What sum of money at compound interest will amount to 650 at the end of one year and 676 at the end of 2 yr?

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A sum of money invested at compound interest amounts to ₹ 650 at the end of first year and ₹ 676 at the end of second year. The sum of money is :

As per the given in question , Interest on ₹ 650 for 1 year = 676 – 650 = ₹ 26

⇒ r = 4% per annum

P =	A
	1 +
r		t
	100

P =	650
	1 +
4		1
	100

=	650	= 650 ×	25	= ₹ 625
( 26/25 )	26

Using the given formula :Here, b – a = 1 , B = Rs 676, A = ₹ 650

R% =		B	− 1		× 100%
A

R% =		676	− 1		× 100%
650

R% =		676 −650		× 100%
650

Amount = P		1 +	R		1
100

650 = P		1 +	4
100

⇒ P =	650 × 100	= ₹ 625
104

Note : A sum at a rate of interest compounded yearly becomes ₹ A, in n years and ₹ A2 in (n + 1) years,

then P = A1		A1		n
A2

Correct Answer:

Description for Correct answer:

Let the principal = P According to the question,

\( \Large \textbf{Note:} \) In compound interest amount increases in same ratio.\( \Large P \times \frac{26}{25}=650 \)\( \Large P=\frac{650 \times 25}{26}=Rs. 625 \)

Hence Required principal =Rs. 625

Part of solved Simple and compound interest questions and answers : >> Aptitude >> Simple and compound interest

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