Question

A sum amounts to Rs 756.25 at 10%per annum in 2 year compounded annually find the sum (Hint sum means principal)

Answer 1

A= 756.25, r=10% , n=2yrs, P=?

A = P(1+ r/100)^2

756.25 = P(1+10/100)^2

756.25 = P(11/10)^2

756.25*10*10/11*11 =P

P= 625