Question

What sum of money will amount to Rs.7056 in 2 years at 5%
per annum compounded annually?
​

Answer 1

Given : sum of money amount to Rs 7056 in 2 years at 5% per annum compounded annually

To Find :    sum of money

Solution:

 sum of money  = P

Rate of interest  R = 5 %

Time n = 2 Years

Amount  A = 7056  

A = P(1 + R/100)ⁿ

=> 7056  = P(1  + 5/100)²

=> 7056 = P( 1  + 1/20)²

=> 7056 = P ( 21/20)²

=> 7056 = P * 441/400

=> P = 400 x 16

=> P = 6400

Hence Sum of Money = Rs 6400

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