A sum of money is invested for 3 years at a certain rate of interest. Had the rate of interest been 1 %more it would have fetched rupees 18 more than before find the sum of the invested.

Question

Mathematics

Finn Roberts

2 May, 01:11

A sum of money is invested for 3 years at a certain rate of interest. Had the rate of interest been 1 %more it would have fetched rupees 18 more than before find the sum of the invested.

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Dominic Gaines · Answer 1

Answer: the sum invested = $600

Step-by-step explanation:

Interest (I) = Principal (P) * rate (r) * time (t)

Original amount: I = P * r * 3

Increased by 1%: I + 18 = P * (1+.01) r * 3

Substitute I with Prt and set the equations equal to each other to find r:

3Pr + 18 = 3.03Pr

Solve for Pr:

18 = 0.03Pr

:0.03 : 0.03

600 = Pr