Question

the compound interest on a certain sum of money at 5% p.afor 2 years is 287. find the sum

Answer 1

Answer:

P(1+R/100)n -P = compound interest

P(1+5/100)2-P = 287

P(105/100)(105/100) -P =287

P(1.05)(1.05) - P =287

P1.1025 -P =287

P(1.1025-1) = 287

P(.1025) = 287

P = 287/.1025

P = 2800

:. sum of money is 2800