Question

what amount should meena invest in a bank in order to get₹11;576.25in 2, year's at5% 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+R/100]ⁿ

By substituting the given values in the formula, we get

11576.25  = P * [1+5/100]²

⇒ 11576.25  = P * [1/20]²

⇒ P = 11576.25*20*20/21*21

⇒ P = Rs. 10500  

Thus, Ram should invest Rs. 10500 in bank.