Question

What sum of money should be invested for 2 years at compound interest rate of 12% so that the sum of money increases to 4390

Answer 1

Answer:

3499.68112245 rupees

Step-by-step explanation:

We have,

Amount = 4390 rupees

Time = 2 years

Rate = 12 % p. a

A = P ( 1 + R/100)²

4390 = P ( 1 + 12/100)²

4390/P = (28/25)²

P = 4390*625/784

P = 3499.68112245 rupees