Question

On what sum of money will compound interest for 2 years at 8% per annum be ₹7488?

Answer 1

Answer:

Step-by-step explanation:

Answer 2

Concept-

Compound interest is the interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. It is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus 1.

Given-

Compound interest for 2 years at 8% per annum is 7488, i.e. , CI= 7488, time = 2 years , and rate of interest = 8% per annum.

Find-

We need to find the principal amount .

Solution-

We know that,

CI= P(1+r/100)ⁿ

7488 = P( 1+8/100)² - p

7488 = P(108)²/(100)² - P

7488 = P(108² - 100²) / (100)²

P = 7488×100×100 / 108² - 100²

P = 7488×100×100 / 1664

P = 45,000

Hence, Principal amount is 45,000 .

On the amount of 45,000 the compound interest for 2 years at 8% per annum will be rupees 7488.

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