Question

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

Answer 1

Amount (A) = Rs. 5832
Let P be the sum
Rate (r) $=8\%$ p.a
Period (n) = 2 years.
$A=P{(1+\frac{R}{100})}^n\Rightarrow P=A÷{(1+\frac{R}{100})}^n$
$\Rightarrow P=Rs.5832÷{(1+\frac{8}{100})}^2$
$=Rs.5832÷{\left(\frac{27}{25}\right)}^2=Rs.5832\times {\left(\frac{25}{27}\right)}^2$
$=Rs.5832\times \frac{25}{27}\times \frac{25}{27}=8\times 625=Rs.5000$
$\therefore$ Sum = Rs. 5000