Question

Find the principal amount if Compound interest earned is 170 for 2 years compounded annually at 1.5% p.a.

Answer 1

$CI=170A=P{(1+\frac{R}{100})}^{n}P{(1+\frac{R}{100})}^n-p=170P[{(1+\frac{R}{100})}^n-1]=170P((1+\frac{\frac{3}{2}}{100})-1)=170P({\left(\frac{200+3}{200}\right)}^2-1)=170P\left(\frac{(203{)}^2-(200{)}^2}{(200{)}^2}\right)=170$
$P=\frac{170\times 200\times 200}{(203-200)(203+200)}P=\frac{6800000}{1209}P=Rs5624.48$