Question

A sum of money amounts to Rs. 66,836.70 in 2 years at 3$\%$ per annum compound interest. The sum is

Answer 1

We know that,

In compound interest, final amount $A=P{(1+\frac{R}{100})}^n$

Where, $P$ is the principal amount, $R$ is the rate of interest and $n$ is the time period.

Here, $A=66,836.70,R=3\%,n=2$

Let the principal amount be $Rs.P$.

Hence, $66,836.70=P{(1+\frac{3}{100})}^2$

$\Rightarrow 66,836.70=P{\left(\frac{103}{100}\right)}^2$

$\Rightarrow P=\frac{66,836.70\times 100\times 100}{103\times 103}$

$=63000$

Hence, the sum of money that amounts to $Rs.66,836.70$ in $2$ years at $3\%$ per annum compound interest is $Rs.63,000$.