Question

if the compound interest on a sum for 2 years at 10% per annum 1050 the sum is
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Answer 1

Answer:

Rate of interest =10%

The sum for 2 years gives a compound interest of Rs.1050 at a 10% rate.

Formula:

If R is the rate of interest then

Equivalent rate of interest in Compound interest for 2 years = 2R + (R2)/100

Calculation:

Equivalent rate of interest for 2 years at 10% per annum

⇒ [(2 × 10) + (10 × 10)/100]%

⇒ 21%

Now, According to the question

21% of the sum of money = Rs. 1050

100% of the sum of money = Rs. 5000.

∴ The Sum of money is 5000 rupees only.