Question

What amount of money should mohan invest in a bank in order to get 1323 in 2 years at 5% compounded annually?

Answer 1

Amount=principle *(1+5/100)^2
1323=p*(105/100)^2
(1323*100^2)/105^2=p
1200=p

Answer 2

Answer:

Rs.1200

Step-by-step explanation:

Amount(A) = 1323

Time (t) = 2 years

number of compounds per year (n) = 1

rate = 5% = 0.05

Formula = $A=P(1+\frac{r}{n})^{nt}$

Substitute the values .

$1323=P(1+\frac{0.05}{1})^{2}$

$1323=P(1.05)^{2}$

$1323=P\times 1.1025$

$\frac{1323}{1.1025}=P$

$1200=P$

Hence Mohan should invest Rs.1200