Question

A certain sum amounts to 2,970.25 in two years at 9% per annum compounded
annually. Find the sum.
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Answer 1

Answer:

Step-by-step explanation:

A certain sum amounts to rupees 2970.25 in 2 years at 9% per annum compounded annually.

To find : The sum?

Solution :

Principal (P) = ?

Rate of interest (R) = 9% per annum  

Time (n) = 2 years  

Amount (A) = Rs. 2970.25

We know that,  

Given Amount = 2970.25, Time n = 2 years, R = 9%.

We know that A = P(1 + r/100)^n

⇒ 2970.25 = P(1 + 9/100)^2

⇒ 2970.25 = P(109/100)^2

⇒ 2970.25 = P(1.1881)

⇒ P = 2500.

Therefore, the sum = 2500.

Hope it helps!