
What sum of money will amount to INR 2832 at per annum in 5 years?
Answer
497.4k+ views
Hint: In this question, we need to determine the principal sum of money that will amount to INR 2832 in the time period of 5 years with as the rate of interest. For this, we will use the relation between the amount, principal amount, rate of interest and time period.
Complete step-by-step answer:
Here, the rate of interest has been given as in mixed fraction, so first, we will convert the mixed fraction to the proper fraction by following .
Here, a=9, b=1 and c=2 so,
Now, the product of the principal amount, rate of interest (in decimal equivalent) and the time period result in the interest on the amount that one will get after the specified time period. Mathematically, where, I is the interest gained, p is the principal amount, r is the rate of interest and t is the time period.
So, substitute and t=5 years in the formula to determine the expression for the interest gained in terms of the principal amount.
The amount is the summation of the principal amount and the interest gained on the principal amount.
According to the question, the amount is INR 2832. So, substitute in the equation to determine the principal amount.
Hence, the INR 1641.7 sum of money amounts to INR 2832 in 5 years at the rate of interest.
Note: Students should know how to convert mixed fraction to proper fraction. Moreover, whenever the question is not indicating the type of interest (simple or compound) then, we should by default always consider for the simple interest only.
Complete step-by-step answer:
Here, the rate of interest has been given as in mixed fraction, so first, we will convert the mixed fraction to the proper fraction by following
Here, a=9, b=1 and c=2 so,
Now, the product of the principal amount, rate of interest (in decimal equivalent) and the time period result in the interest on the amount that one will get after the specified time period. Mathematically,
So, substitute
The amount is the summation of the principal amount and the interest gained on the principal amount.
According to the question, the amount
Hence, the INR 1641.7 sum of money amounts to INR 2832 in 5 years at
Note: Students should know how to convert mixed fraction to proper fraction. Moreover, whenever the question is not indicating the type of interest (simple or compound) then, we should by default always consider for the simple interest only.
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