Question

7. What is the principal amount, which gives 205 as compound interest for the two years at 5% per annum?
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Answer 1

Answer:

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Question

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

Medium

Solution

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Let the sum be Rs.x

We know that

CI=A−P

CI=P(1+

100

R

)

n

−P

CI=P[(1+

100

R

)

n

−1]

164=x[(1+

100

5

)

2

−1]

164=x[(1.05)

2

−1]

x=

0.1025

164

x=1600

Thus, required sum is Rs.1600