Question

on what principal the amount will become ₹676 in 2 years at the rate 4%p.a. interest compounded annually?​ please tell

Answer 1

Answer:

₹625

Step-by-step explanation:

Given,

Amount(A)=₹676

Time (T)=2 yrs

Rate (R)=4%p.a.

We know,

A=P(1+r/100)^n

=)676=P(1+4/100)^2

=)676=P(1+1/25)^2

=)676=P(26/25)^2

=)676=P×26×26/(25×25)

=)676=676 P/625

=)P=₹625