Question

If David deposited ₹ 2000 for2:5 years at 15% per annum and the interest is reckoned half- yearly,what is the number of periods of transition​

Answer 1

Answer:

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Given details are,

Rate = 10 % per annum

Amount = Rs 756.25

Time (t) = 2 years

By using the formula,

A = P (1 + R/100) n

756.25 = P (1 + 10/100)2

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

= 756.25/1.21

= 625

∴ The principal amount is Rs 625