Salma invested a certain amount of
money in a bank which gives an interest rate of 10% compounded annually. How
much did she invest at the start if she got 4500 sh at the end of 2 years?
Solution
n=2, t=1, R=10%, A2=4000,
P=?
An = P(1 + RT/100)n
A2 = P(1 + (10x1)/100)2
A2 = P(1 + 10/100)2
A2 = P(100/100
+ 10/100)2
A2 = P(110/100)2
But A2=4500,
4500 = P(1.1)2
4500 = 1.21P
4500 = 1.21P
1.21 1.21
4500 = P
1.21
P = 3719
Hence
at the start she invested Tsh 3719
TRY THIS………………………
Nishita invested a certain amount of
money in a bank which gives an interest rate of 6% compounded annually. How
much did she invest at the start if she got 100,000 sh at the end of 4 years?
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