Question

a certain sum amount to rs 2970.25 in two years at 9% per annum compunded annualy.find the sum

Answer 1

Interchange the formula from amount to principle

Answer 2

Answer:

The value of sum is Rs. 2500.

Step-by-step explanation:

Amount = 2970.25

Time = 2 year

Rate of interest = 9%=0.09

The formula for amount:

$A=P(1+r)^t$

$2970.25=P(1+0.09)^2$

$2970.25=P(1.09)^2$

$2970.25=1.1881P$

$\frac{2970.25}{1.1881}=P$

$2500=P$

Therefore the value of sum is Rs. 2500.