Discussion of Question with ID = 091 under Compound-Interest

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Question

The compound amount after 2 years on a principal of Rs. P is same as that on a principal of Rs. (1035 - P) after 3 years, then what is P if the rate of interest is 7% p.a. compounded yearly?

A

Rs. 535.

B

Rs. 635.

C

Rs. 435.

D

Rs. 735.

Soln.
Ans: a

We have P × $(1 + 7/100)^2$ = (1035 - P) × $(1 + 7/100)^3$. Cancelling, we get P = (1035 - P) × (1 + 7/100). Simplifying, P = ${1035 × (100 + 7)}/(200 + 7)$, which gives P = Rs. 535.


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