Question

Riya returned a sum of rupees 1732.50 against a loan at interest of 5% per annum for a period of 2 years find the sum of borrowed by her​

Answer 1

amount=1732.50

rate=5%p.a.

n=2

let principal be P

SO,

$A=P(1+\frac{R}{100})^{n}$

1732.50=$P(1+\frac{5}{100})^{2}$

$1732.50 = P(\frac{100+5}{100})^{2}$

$1732.50=P(\frac{105}{100})^{2}$

$1732.50=P(\frac{105}{100})(\frac{105}{100})$

$1732.50*\frac{100}{105}* \frac{100}{105}$

$1.1*\frac{100}{7} *\frac{100}{1}$

$\frac{11000}{7}$=$1571.42$

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