Question

On what
sum of money will compound
interest for 2 years
At 5% per annul be 164.

Answer 1

We have,

Rate = 5 % per annum

Compound Interest (CI) = ₹164

Time (t) = 2 years

By using the formula,

Let P be ‘x’

CI = A – P

164 = P (1 + R/100) n – P

Substituting the values, we have

= P [(1 + R/100)n – 1]

= x [(1 + 5/100)2 – 1]

= x [(105/100)2 – 1]

164 = x ((1.05)2 – 1)

x = 164 / ((1.05)2 – 1)

= 164/0.1025

= ₹1600

Therefore

The required sum is ₹1600.