Question

on what sum will the compound interest at 5% p.a. for 2 years compounded annually be rs 164

Answer 1

Heya ☺

Given that

C.I. = ₹164

R = 5 % p.a.

T = 2 years

P = ?

Solution

When the interest is compounded annually

C.I. = P{(1+R/100)^n - 1}

=> 164 = P{(1+5/100)^2 - 1}

=> 164 = P{(100+5/100)^2 - 1}

=> 164 = P{(105/100)^2 - 1}

=> 164 = P{(21/20)^2 - 1}

=> 164 = P{441/400 - 1}

=> 164 = P{441 - 400/400}

=> 164 = 41P/400

=> P = 164 × 400/41

=> P = ₹1,600

Thanks