Question

3. What sum of money should Amit invest in a fixed deposit account in a bank in order to get ₹ 44100in 2 years at 5% p.a. interest compounded annually?​

Answer 1

Answer:

40,000

Step-by-step explanation:

Let money invested be P

The total amount A be 44,100

For a period of n=2 years with r=5% p.a.compounded annually.

We know that,

for compounded interest,

$A=P [1+r/100]^{n}$

i.e., $44100 = P [ 1+5/100 ]^{2}$

simplify, we get P = 40,000