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Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?
- a)155.25
- b)156.25
- c)157.25
- d)158.25
Correct answer is option 'B'. Can you explain this answer?
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Given:
- Compound interest rate = 4% per annum
- Amount received at the end of the scheme = Rs. 169
To find:
- How much should Ramesh invest today?
Solution:
We can use the compound interest formula to solve this problem. The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the amount after time t
P = the principal amount (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, Ramesh invested for 2 years and received Rs. 169 at the end of the scheme. We need to find the principal amount (P).
Step 1: Convert the given interest rate to decimal form:
4% = 4/100 = 0.04
Step 2: Substitute the given values into the compound interest formula:
169 = P(1 + 0.04/1)^(1*2)
Simplifying the equation further:
169 = P(1.04)^2
Step 3: Solve for P:
Dividing both sides of the equation by (1.04)^2:
169 / (1.04)^2 = P
Using a calculator to evaluate the right-hand side of the equation:
P ≈ 156.25
Therefore, Ramesh should invest approximately Rs. 156.25 today.
- Compound interest rate = 4% per annum
- Amount received at the end of the scheme = Rs. 169
To find:
- How much should Ramesh invest today?
Solution:
We can use the compound interest formula to solve this problem. The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the amount after time t
P = the principal amount (initial investment)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, Ramesh invested for 2 years and received Rs. 169 at the end of the scheme. We need to find the principal amount (P).
Step 1: Convert the given interest rate to decimal form:
4% = 4/100 = 0.04
Step 2: Substitute the given values into the compound interest formula:
169 = P(1 + 0.04/1)^(1*2)
Simplifying the equation further:
169 = P(1.04)^2
Step 3: Solve for P:
Dividing both sides of the equation by (1.04)^2:
169 / (1.04)^2 = P
Using a calculator to evaluate the right-hand side of the equation:
P ≈ 156.25
Therefore, Ramesh should invest approximately Rs. 156.25 today.
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Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer?
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Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer?.
Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer? for Railways 2024 is part of Railways preparation. The Question and answers have been prepared according to the Railways exam syllabus. Information about Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Railways 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramesh invests in a scheme for two years which gives him a compound interest of 4% per annum. If he is due to receive Rs. 169 at the end of the scheme, how much should he invest today?a)155.25b)156.25c)157.25d)158.25Correct answer is option 'B'. Can you explain this answer?.
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