what sum will amount to rs 1116 in 4 years at 6%p.a.?
solve for x
x(1.06)^4 = 1116
To find the sum that will amount to Rs 1116 in 4 years at 6% p.a., we need to use the compound interest formula. The formula is:
A = P(1 + r/n)^(nt)
Where:
A is the future amount (Rs 1116)
P is the principal amount (the sum we are trying to find)
r is the annual interest rate (6% or 0.06 as a decimal)
n is the number of times the interest is compounded per year (usually annually, so n = 1)
t is the number of years (4 years)
Substituting the given values into the formula, we can solve for P:
1116 = P(1 + 0.06/1)^(1 * 4)
Simplifying the equation:
1116 = P(1.06)^4
Now we need to isolate P by dividing both sides of the equation by (1.06)^4:
P = 1116 / (1.06)^4
P ≈ 1000.33
Therefore, the sum that will amount to Rs 1116 in 4 years at 6% p.a. is approximately Rs 1000.33.