Salva 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 300,000 sh at the end of 4 years?
solution
n=4, T=1, R=10%, A4=300,000, P=?
An = P(1 + RT/100)n
A4 = P(1 + (10x1)/100)4
A4 = P(1 + 10/100)4
A4 = P(100/100 + 10/100)4
A4 = P(110/100)4 But A4=8000,
300,000 = P(1.1)4
300,000 = 1.4641P
300,000 = 1.4641P
1.4641 1.4641
300,000 = P [use
math tables to divide if you like]
1.4641
P = 204,904.04 [to 2 d.p]
Hence at the start she invested Tsh 204,904.04
TRY
THIS……………………..
Sylvia 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 150,000 sh at the end of 5 years?