Question

What sum will amount to Rs. 6,593.40 in 2 years at C.I., if the rates are 10 percent for the successive years?

Answer 1

Let principal (p) = Rs.100

For 1${}^{st}$ year

P = Rs.100

R = 10%

T = 1 year

I $=\frac{100\times 10\times 1}{100}=$ 10

A = 100 + 10 = Rs.110

For 2${}^{nd}$ year

P = Rs.110

R = 11%

T = 1 year

I $=\frac{110\times 11\times 1}{100}=$ 12

A = 110 + 12.10 = Rs.122.10

If Amount is Rs.122.10 on a sum of Rs.=100

If amount is Rs.1, sum = $\frac{100}{122.10}$

If amount is Rs.6593.40, sum = $\frac{100}{122.10}\times 6593.40$

= Rs.5400