Question

What sum will amount to 16,500 at 5% per annum for 2 years if the interest is compounded annually

Answer 1

Answer:

$a = p(1 + \frac{r}{100} ) {n}$

a=16500( 1+5/100)2

= 16500 ×105/100×105/100

=165×11025/100

=1819125/100

=18191.25

Answer 2

The sum is Rs. 14,965.95

Step-by-step explanation:

Given: Amount is 16,500, r=5% and t=2 years

As we know,

$\Rightarrow A=P \times \left ( 1-\frac{r}{100} \right )^{t}$

$\Rightarrow 16,500=P \times \left ( 1-\frac{5}{100} \right )^{2}$

$\Rightarrow 16,500=P \times \left (\frac{21}{20} \right )^{2}$

$\Rightarrow 16,500=P \times \left (\frac{441}{400} \right )$

$\Rightarrow P = 16,500\times \left (\frac{400}{441} \right )$

$\Rightarrow P = 14,965.98 \right )$

The sum is Rs. 14,965.95