Question

5. On what sum of money will the compound
interest for 2 years at 5 per cent per annum
amount to * 768.75 ?​

Answer 1

Answer:

We have,

Amount A=Rs768.75

Principal value =?

Rate =r=5%

Time n=2year

So,

Using formula

A=P(1+

100

r

)

n

768.75=P(1+

100

5

)

2

768.75=P(1+

20

1

)

2

768.75=P(

20

21

)

2

P=768.75×

21

20

×

21

20

P=Rs697.2

Hence, this is the answer.