Question

A sum amounts to Rs. 756.25 at $10\%$ per annum in 2 years, compounded annually. Find the sum.

Answer 1

Amount (A) = Rs. 756.25
Rate (R) $=Rs.10\%$ p.a
Period (n) = 2 years
Amount $=P{(1+\frac{R}{100})}^n$
or Principal (P) $=A÷P{(1+\frac{R}{100})}^n$
$=Rs.756.25÷{(1+\frac{10}{100})}^2$
$=Rs.756.25÷{\left(\frac{11}{10}\right)}^2$
$=Rs.\frac{75625}{100}\times {\left(\frac{10}{11}\right)}^2=Rs.\frac{75625}{100}\times \frac{100}{121}$
$=Rs.625$