A sum amounts to Rs. 8,028 in 3 years and to Rs. 12,042 in 6 years at a certain rate percent per annum, when the interest is compounded yearly. Find the sum.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 5352.
A = P[1 + r/100]t
A in 3 years = 8028
A in 6 years = 12042
Let Sum = P
After 3 years:
⇒ 8028 = P[1 + r/100]3
After 3 years, 8028 will act as the principal for another 3 years:
⇒ 12042 = 8028[1 + r/100]3
From both equations:
⇒ 8028/12042 = P/8028
⇒ P = 5352
8028/12042 = P/8028
⇒ P = (8028) × 2/12042
⇒ P = 8028 × 2/3
⇒ P = 2676 × 2
⇒ P = 5352