Question

The C.I earned by a sum of money in 2 years at 8% p.a. is ₹832. Find the sum

Answer 1

Let principle value or initial sum = P

Let Value​​Value after 2 years = A

A = P + Compound interest

Given C.I = 832

We know A = P (1+r/100)^n

Here r = 8% , n = 2

A = P (1+8/100)^2

A = P (1+2/25)^2

A = P (27/25)^2

A = P (1.1664)

A = P + 832

P +832 = 1.1664P

(1.1664-1) P = 832

0.1664 P = 832

P = 832/(0.1664)

P = 5000

Initial Sum = 5000

​​​​Sum after 2 year = 5000+832 = 5832



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