Question

What sum will become ₹5,408 after 2 years at 4% per annum when interest is compounded annually?

Answer 1

Hey friend,

Here is your answer :-

Here, Amount = 5,408 ; Rate = 4% and Time = 2 years

$a = p(1 + \frac{r}{100} )^{t} \\ \\ 5408 = p(1 + \frac{4}{100} )^{2} \\ \\ 5408 = p(1 + \frac{1}{25} )^{2} \\ \\ 5408 = p( \frac{26}{25} )^{2} \\ \\ 5408 = p \times \frac{676}{625} \\ \\ 5408 \times \frac{625}{676} = p \\ \\ p = \frac{3380000}{676} \\ \\ p = 5000$

Hence, the Principal is ₹5,000

I hope this will help you....