Compound Intrest

Vedic Maths trick to find Compound Intrest

A sum amount to Rs 2500 in 2 years and to Rs. 2600 in 3 years at compound interest. Find the sum?

Amount for 2 years = 2500

Amount for 3 years = 2600

First we will find Rate of Interest by using the Compound intrest formula:

Compound Interest = C.I.
Principal = P
Rate Of Interes = r
Time = n

P [ 1 + r / 100 ]2 = 2500

P [ 1 + r / 100 ]3 = 2600

Now lets divide the second equation by first equation :

P [ 1 + r / 100 ]2 / P [ 1 + r / 100 ]3 = 2600 / 2500

[ 1 + r / 100 ] = 2600 / 2500

r = 4 %

Now we will find Principal amount by putting values of r in the First equation :

P [ 1 + r / 100 ]2 = 2500

P [ 1 + 4 / 100 ]2 = 2500

P * [ 104 / 100 ] 2 = 2500

P = Rs. 2311.3905325444

Sum is Rs. 2311.3905325444