Question

What amount of money should Ram invest in bank in order to get 711,576.25 in 2 years
at 5% compounded annually?
und interest on 5000 for 2 years at 6% p.a, interest paid yearly.​

Answer 1

Answer:

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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+]ⁿ

By substituting the given values in the formula, we get

11576.25  = P * [1+]²

⇒ 11576.25  = P * []²

⇒ P = Rs. 10500  

Thus, Ram should invest Rs. 10500 in bank.  

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