Question

in how many years will rs. 4500 amounts to rs. 5445 at 10 percent per annum compound interest​

Answer 1

A=P(1+r100)n , where A= final amount, P= the amount borrowed, r= interest and n= number of periods.

Now, the amount to be paid after 2 years is Rs.5445 so A=Rs.5445

and n=2 , the compound interest per annum is 10% so r=10% and we have to find the principal amount.

Put the known values in the given above equation,

5445=P(1+10100)25445=P(1110)25445=P(121100)⇒P=100×5445121⇒P=100×45⇒P=Rs.4500

Hence, Rs.4500 will amount to Rs.5445 in 2 years at 10% per annum compound interest.