Question

A certain sum of money amounts to Rs. $23,400$ in $3$ years at $10$% per annum simple interest. Find the amount of same sum in $2$ years at at $10$% p.a. compound interest.

Answer 1

For ,
$N=3$ years
$R=10\%$
We have $Amount=P+S.I.=P+\frac{PNR}{100}=Rs.23,400$
$=>P+\frac{P\times 3\times 10}{100}=23,400$
$=>1.3P=Rs.23,400$
$=>P=Rs.18,000$
And on interest being compounded for 2 years, at $R=10$ % $Amount=P{(1+\frac{R}{100})}^N=18,000\times {(1+\frac{10}{100})}^2=18,000\times {1.1}^2=Rs.21,780$