Question

Find the sum that yields an interest of Rs.170 after two years at the rate of 12.5 %per annum interest being compounded annually.

Answer 1

Answer:

Rs 640

Step-by-step explanation:

P + I = P( 1 + r/100)ⁿ

P + 170 = P(1 + 12.5/100)²

P + 170 = 81/64 P

17/64 P = 170

P = 170 ÷ 17/64 = Rs 640

Answer: The sum is  Rs 640