Question

What sum will amount to $676 at 4% per annum is copounded anually

Answer 1

Answer:

Given:-

A=Rs.4913

Time =

2

3

years.

Rate of interest =12.5 per annum

Since the interest is compounded half-yearly.

Therefore,

n=3

R=

2

12.5

=6.25

As we know that,

A=P(1+

100

R

)

n

⇒4913=P(1+

100

6.25

)

3

⇒4913=P(

16

17

)

3

⇒P=

4913

4913×4096

=Rs.4096

Hence the sum will be Rs.4096