Question

On what sum of money will the compound interest for 2 years at 5 per cent per annum amount to Rs 768.75?

Answer 1

$A=Rs.768.75,r=5\%,n=2$

$⟹A=P(1+\frac{r}{100}{)}^n$

$⟹768.75=P(1+\frac{5}{100}{)}^2⟹P=697.27\approx 697.5$

Hence, sum$=Rs.697.5$(approx).