Question

What sum of money will amount to rs 11025 in 2 years at 5% p.A. Compounded annually?

Answer 1

Explanation:

Given, A=11025

n = 2 periods

R = 5% p.a

A = P(1 + R/100)^n

11025 = P(21/20)²

11025 = 441P/400

P = 11025*400/441

P = 3675*400/147

P = 1225*400/49

P = 25*400

P = ₹10,000