Question

A certain sum amount to 14,580 in 2 years at 8% per annum compound interest, compounded annually. Find the sum​

Answer 1

Step-by-step explanation:

AMOUNT=14580

TIME = 2 YEARS

RATE = 8%

PRINCIPLE = X

FIRST WE FIND PRINCIPLE

NOW

WE KNOW THAT THE FORMULA OF COMPOUND INTREST.

A= P (1+8%)²

14580= P(1+0.08)²

14580= P(1.08)²

14580= P(1.08×1.08)

14580= 1.1664 PRINCIPLE

14580/1.1664= 12500 PRINCIPLE