Question

On what sum will the compound interest at $5\%$ per annually for $2$ years compounded annually be $Rs.164?$

Answer 1

Let the sum be $Rs.x$

We know that$:$

$CI=A-P$

$=P{\left(1+\frac{R}{100}\right)}^n-p$

$=P\left[{\left(1+\frac{R}{100}\right)}^n-1\right]$

$164=x\left[{\left(1+\frac{5}{100}\right)}^2-1\right]$

$164=x\left[{\left(1.05\right)}^2-1\right]$

$x=\frac{164}{0.1025}$

$x=1600$

Thus$,$ the required sum is $Rs.1600.$