Question

Sum of money amounts to Rs. 453690 in 2 years at $6.5\%$ per annum compounded annually. Find the sum.

Answer 1

Amount (A) = Rs. 453690
Rate (R) $=6.5\%=\frac{13}{2}\%$ p.a.
Period (n) = 2 years
$\because A=P{(1+\frac{R}{100})}^n$
$P=A÷{(1+\frac{R}{100})}^n$
$=Rs.453690÷{(1+\frac{13}{2\times 100})}^2$
$=Rs.453690÷{\left(\frac{213}{200}\right)}^2$
$=Rs.453690\times {\left(\frac{200}{213}\right)}^2$
$=Rs.\frac{453690\times 200\times 200}{213\times 213}$
$=10\times 200\times 200=Rs.400000$
$\therefore$ Sum = Rs. 400000