Question

A sum of money invested at compound interest of 8% per annum compounded
annually amounted to * 7,290 in 2 years. Find the sum invested.
​

Answer 1

Answer:

Sum invested = 6,250 currency units.

Step-by-step explanation:

Let the sum invested be denoted by P.

Period of investment = n = 2 yrs

Total amount after 2 years = S

Interest rate = 8% per annum = r

We know   S = P (1 + r/100)^n

So   7,290 = P (1 + 8/100)^2

       P = 7,290 / 1.08^2 = 6,250 currency units.

Done.