Question

On what sum will the compound interest at 5% per annum for 2 years compounded manually be RS 164?

Answer 1

Principal amount (p) = ?

rate of interest = i = 5%

time = n = 2years  

Compound interest = CI = 164

compounded Interest  = P((1+i)^n - 1)

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

164= P(1 + 0.05)^2-1)

164= P(1.05)^2-1)

164=P(1.1025)-1)

164/0.1025 = P

1600 = P = Principal Amount