Question

what amount of money should Ram invest in bank in order to get rupees 11576. 25 in 2 years at 5% compounded annually​

Answer 1

If Ram gets Rs. 11576.25 as amount in 2 years at 5% compounded annually then Ram should invest Rs. 10500.

Step-by-step explanation:

Amount, A = Rs. 11576.25

Time Period, n = 2 years

Rate of interest, R = 9%

Let the principal that Ram should invest in bank be denoted as Rs. “P”.

The formula for the amount in case of compounding the interest annually is given by,

A = P [1+$\frac{R}{100}$]ⁿ

By substituting the given values in the formula, we get

11576.25  = P * [1+$\frac{5}{100}$]²

⇒ 11576.25  = P * [$\frac{21}{20}$]²

⇒ P = $\frac{11576.25*20*20}{21*21}$

⇒ P = Rs. 10500  

Thus, Ram should invest Rs. 10500 in bank.  

------------------------------------------------------------------------------

Learn more:

If 40000 amounts to 48620.25 in 2 yrs compound interest payable half yearly find the rate of interest per annum.

https://brainly.in/question/9464578

Find the simple interest when rate is 5% half yearly for 2.5 years

https://brainly.in/question/8681090