the compound interest on a certain sum at 5% p.a. for 2 yrs is 2870. find the sum.
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Step-by-step explanation:
Given, rate r=5%, n=2 years, compound interest = Rs. 1100
Compound interest = Amount− Principal
Therefore, 1100=P(1+
100
5
)
2
−P
⇒1100=P(1.05)
2
−P
⇒1100=1.1025P−P
⇒P=
0.05
1100
⇒P= Rs. 22000
Simple interest =
100
PRT
=
100
22000×5×2
Simple interest = Rs. 2200
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