Question

What sum will amount to Rs. 6,593.40 in 2 years at C.I., if the rates are 10 per cent and 11 per cent for the successive years?

Answer 1

$A=P(1+\frac{R}{100})$
Here A=6593.40 Rs.,R=10%,11%,T=2 years
$6593.40=P(1+\frac{10}{100})(1+\frac{11}{100})$
$6593.40=P\times \frac{110}{100}times\frac{111}{100}$
$P=\frac{6593\times 100}{11\times 111}$
$P=5400Rs.$