Question

On what sum of money will the compound interest for 2 years at 5%per annum amount to 768.75(using formula

Answer 1

Heya ☺

Given that

A = ₹768.75

R = 5 % p.a.

T = 2 years

P = ?

Solution

When the interest is compounded annually

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

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

=> 76,875/100 = P(100+5/100)^2

=> 3,075/4 = P(105/100)^2

=> 3,075/4 = P(21/20)^2

=> 3,075/4 = P × 441/400

=> P = 3,075 × 400/4 × 441

=> P = ₹7,500

Thanks

Answer 2

n=2years

r= 5%

A=768.75

A=P[1+r/100]^n

768.75=P[1+5/100]^2

768.75=P[21/20]^2

768.75=P[441/400]

768.75*400/441=P

P= 697.27