Question

A certain sum amounts to Rs 5832 in 2 years at 8% compounded interest. Find the sum.

Answer 1

$$\begin{gathered} \mathrm{Let}\mathrm{the}\mathrm{sum}\mathrm{be}\mathrm{P}. \\ \mathrm{Thus},\mathrm{we}\mathrm{have}: \\ \mathrm{A}=\mathrm{P}{\left(1+\frac{\mathrm{R}}{100}\right)}^{\mathrm{n}} \\ 5,832=\mathrm{P}{\left(1+\frac{8}{100}\right)}^2 \\ 5,832=1.1664\mathrm{P} \\ \mathrm{P}=\frac{5,832}{1.1664} \\ =5,000 \\ \mathrm{Thus},\mathrm{the}\mathrm{required}\mathrm{sum}\mathrm{is}\mathrm{Rs}5,000. \end{gathered}$$