Question

4. On what sum will the compound interest at 5% per annum for 2 years compounded annually be Rs. 164? ​

Answer 1

Answer:

Step-by-step explanation:

Given the compound interest for a certain sum of money is 164

Rate of interest = 5%

Time = 2 yrs

$CI = P(1+i)^n-1$

$164 = P(1+0.05)^2-1$

$164 = P(1.05)^2-1$

$(0.1025)p = 164$

$\boxed{P = 1600}$

the principle amount is 1,600