Question

Find the sum of money that amounts to $Rs31,740$ in $2$ years if the interest is compounded annually at the rate of $15\%$ per annum.

Answer 1

Given:-

$A=Rs.31740$

$n=2\text{years}$

$R=15$

As we know that,

$A=P{(1+\frac{R}{100})}^n$

$31740=P{(1+\frac{15}{100})}^2$

$31740=P{\left(\frac{23}{20}\right)}^2$

$\Rightarrow P=\frac{31740\times 20\times 20}{23\times 23}=Rs.24000$

Hence the sum of money is $Rs.24000$.