Posted by Anonymous on Monday, January 21, 2013 at 6:31am.
the simple interest of certain amount for a period of 2 years is 400 .
the compound interest for the same amount for the same period is 410.
find the principal and rate of interest?
- maths-urgently needed - Reiny, Monday, January 21, 2013 at 10:30am
let the principal be P
let the rate be i
I = PiT
400 = 2Pi
Pi = 200 --- P = 200/i
P(1+i)^2 - P = 410
P( (1+i)^2 - 1) = 410
P = 410/(1 + 2i + i^2 - 1)
= 410/(i^2 + 2i)
410/(i^2 + 2i) = 200/i
200i^2 + 400i = 410i
200i^2 - 10i=0
i(200i-10) = 0
i = 0 or i = 10/200 = .05
if i = .05 , then P = 200/.05 = 4000>/b>
( I rejected i = 0 , since it would make P as undefined)
I = prt = 4000(.05)(2) = 400
Amount = 4000(1.05)^2 = 4410
interest = 4410-4000= 410 , looks good!
Answer This Question
More Related Questions
- Kirr - *solve execises by using compounded interest formula Principal $ 700 ...
- algebra - A principal of $5000 was invested in a savings account for 4 years. If...
- maths - The difference of compound interest and simple interest on an amount at ...
- math - Find the total number of compounding periods and interest rate per period...
- math - Compute the compound quarterly amount after 1 year for $100 invested at ...
- computer science - When $1000 is deposit at 5% simple interest, the amount grows...
- Visual Basic 2008 Programming - Help! I'm not sure how to start or how calculate...
- Business mathematics - A sum of money when invested for a definite period at r% ...
- Math - When interest is compounded once a year, the formula for compound ...
- Business Math - Solve the following by using the present value formula. Compound...