Question

on what sum of money will compound interest for 2 years at 5 percent per year amount to ₹164?​

Answer 1

Answer:Solution : interset =P(1+r100)T-P, where P is the principal amount and r is the rate of interest and t is the time period. On solving we get=>P=Rs. 1600.

Answer 2

Answer:

Given that

C.I. = ₹164

R = 5 % p.a.

T = 2 years

P = ?

Solution

When the interest is compounded annually.

C.I. = P{(1+R/100)^n - 1}

=> 164 = P{(1+5/100)^2 - 1}

=> 164 = P{(100+5/100)^2 - 1}

=> 164 = P{(105/100)^2 - 1}

=> 164 = P{(21/20)^2 - 1}

=> 164 = P{441/400 - 1}

=> 164 = P{441 - 400/400}

=> 164 = 41P/400

=> P = 164 × 400/41

=> P = ₹1,600