Question

on what sum of money will compound interest for 2 years at 5% per annum amount to
$768.75

Answer 1

Heya dear user !!!

Here is your answer,

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Given :-
Amount = $ 768.75
Rate of interest = 5% per annum
Time (n) = 2 years

Let Principal be 'P'
$Amount = P {(1 + \frac{R}{100} )}^{n} \\ \\ 768.75 = P {(1 + \frac{5}{100} )}^{2} \\ \\ 768.75 = P {( \frac{21}{20} )}^{2} \\ \\ 768.75 = P \times \frac{441}{400} \\ \\ 768.75 \times \frac{400}{441} = P \\ \\ 697.27 = P$

Hence, Principal (P) = $697.27

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Hope it helps.