Question

on what sum of money will compound interest for two years at 5%p.a. amount to rs 205​

Answer 1

Given,

Amount = 205, Rate of interest = 5%, Time = 2 years.

To Find,

Sum = ?

Solution,

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

==> 205 = P(1+5/100)^2

==> 205 = P(1+1/20)^2

==> 205 = P(21/20)^2

==> 205 = P(441/400)

==> 205 * 400 = 441P

==> 82000 = 441P

==> P = 182.94

Result

Sum = 182. 94