A sum when reckoned at 15/2% per annum amount to RS 3920 in 3 years . Find the sum
To find the sum, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = The final amount (in this case, Rs 3920)
P = The principal sum (the initial amount invested)
r = The interest rate (15/2% per annum, or 0.15/2 = 0.075)
n = The number of times interest is compounded per year (assuming once per year, so n = 1)
t = The number of years (in this case, 3)
Substituting the given values into the formula:
3920 = P(1 + 0.075/1)^(1*3)
Simplifying the equation:
3920 = P(1 + 0.075)^3
To isolate P, divide both sides of the equation by (1 + 0.075)^3:
3920 / (1 + 0.075)^3 = P
Calculating the result:
3920 / (1.075)^3 ≈ P
P ≈ 3477.44
Therefore, the principal sum is approximately Rs 3477.44.
APR = 15/2% = 7.5% = 0.075.
P = Po + Po*r*t = 3920.
Po + Po*0.075*3 = 3920.
Po = ?. = Sum(Amt. borrowed).