Question

What sum will become 12,550 after 2 years at 8% per annum compound interest?​

Answer 1

Answer:

Rs.11620.40

Step-by-step explanation:

Assumption: Let the principal be Rs.x.

R = 8%

T = 2 years

A = Rs.12,550

C.I. = Rs.12550 - x

C.I. = P{(1 + (R/100)) - 1}

=> 12550 - x = x [{1 + (8/100)} - 1]

=> 12550 - x = x [{1+ (2/25)} - 1]

=> 12550 - x = x[{(25 + 2)/25} - 1]

=> 12550 - x = x {(27/25) - 1}

=> 12550 - x = x {(27 - 25)/25}

=> 12550 - x = 2x/25

=> 12550 = 2x/25 + x

=> 12550 = (2x + 25x)/25

=> 12550 = 27x/25

=> 12550 × 25/27 = x

=> 11620.4 = x

The sum was Rs.11620.40