Question

on what sum of money will the compound interest for 2 years at 5% per annum amount to rupees 76 8.75

Answer 1

☆Hello friend☆

Amount = Principal (1+ r/100)^n

Rs 768.75 = P(1 +5/100)^2

Rs 768.75 = P(105/100)^2

Rs 768.75 ×100/105 × 100/105 = P

Rs 697.2 = Principal

$hope \: it \: helps$

☺☺☺

Answer 2

Given:

Time,t=2 years

Rate of interest,r=5%

Amount,A=Rs 768.75

To find:

Sum of money

Solution:

Let sum of money=P

We know that

$Amount=P(1+\frac{r}{100})^t$

Using the formula

$768.75=P(1+\frac{5}{100})^2$

$768.75=P(1.05)^2$

$P=\frac{768.75}{(1.05)^2}$

$P=697.28$

Hence, sum of money=Rs 697.28