Question

What sum will amount of Rs. 6,593.40 in 2 years at C.I. , if the rates are 10 per cent and 11 per cent for the two successive years ?

Answer 1

Let principal (p) = Rs. 100
For 1^st year :
P = Rs. 100
R = 10%
T = 1 year

I = `[100 xx 10 xx 1 ]/100` = Rs. 10.

A = 100 + 10 = Rs. 110

For 2^nd year :
P = Rs. 110
R = 11%
T = 1 year

I = `[110 xx 11 xx 1 ]/100` = Rs. 12.10.

A = 110 + 12.10 = Rs. 122.10
If Amount is Rs. 122.10 on a sum of Rs. = 100

If amount is Rs. 1, sum = `100/122.10`

If amount is Rs. 6593.40, sum =  `100/122.10 xx 6593.40` = Rs. 5400