Question

A certain amount of money invested at 10% per annum compound interest for 2 years become rs 2,000 what is the initial investment

Answer 1

400 is Right answer this question

Answer 2

Explanation:

Compound interest is actually one of the most important ways of investing in terms of mathematical calculation. simple interest can rarely be used in practice but compund interest can be applied to both loans and deposit accounts. A=P(1+r)^n

A: Final Amount

r: Rate of interest

n: No. Of time periods

Given : A = 2000, r = 10%, n = 2 years

Putting Known Values, eqn becomes :

2000=P(1+0.1)^2

2000=P(1.1)^2

2000=P(1.21)

P=2000/1.21

P=1652.89 ans.