Problema Solution

if rs 900 amounts to rs 1044 in 4 years , what sum will be amounted to rs 1368 in 3 and half years at the same rate?

Answer provided by our tutors

let


r = the rate as a decimal


P = rs 900


t = 4 years


A = rs 1044 the future value


A = P(1 + r*t)


900(1 + 4*r) = 1044


by solving we find:


r = 0.04 or 4%


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we need to find P such that:


P(1 + 3.5*0.04) = 1368


by solving we find:


P = rs 1,200


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the sum of rs 1,200 will be amounted to rs 1368 in 3 and half years.