Question

A sum of rs 6250 at 8% per annum compounded annually, after 2 years and 9 months amount to

Answer 1

Let the principal be 'x'
We know,
A=P(1+(R/100))^n
7290=x(1+0.08)^2
7290=x(1.08)^2
7290=1.1664x
x=7290/1.1664
x=6250
Thus, the principal is Rs. 6250

Answer 2

The compound interest accumulation formula is :

P(1 + i)^n = A

Where :

P = the principle amount

A = accumulated amount

i = interest rate

n = Time in years

P = 6250

n = 2  9/12 = 2.75 years

I = 8%

Doing the substitution.

A = 6250(1.08)^2.75

= 6250 × 1.2357 = rs 7723.17