If after two years a sum becomes ₹4000 and after four years it becomes ₹6000 at the same rate of compound interest (compounded annually), then what is the sum?
If after two years a sum becomes ₹4000 and after four years it becomes ₹6000.
As per the formula of compound interest two equations will be formed from the given information.
Here P = principal amount and R = rate of interest.
$$P(1+\frac{R}{100})^{2} = 4000$$ Eq.(i)
$$P(1+\frac{R}{100})^{4} = 6000$$ Eq.(ii)
So Eq.(i) divided by Eq.(ii).
$$\frac{Eq.(i)}{Eq.(ii)} = \frac{P(1+\frac{R}{100})^{2}}{P(1+\frac{R}{100})^{4}} = \frac{4000}{6000}$$
$$\frac1{(1+\frac{R}{100})^{2}} = \frac{2}{3}$$
$$(1+\frac{R}{100})^2\ =\ \frac{3}{2}$$ Eq.(iii)
Put Eq.(iii) in Eq.(i).
$$\frac{3}{2}P=4000$$
$$P=\frac{8000}{3}$$
= ₹2666.66
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