Question

what amount of money should mohan invest in a bank in order to get Rs.1323 in 2 years at 5 pecentage compounded annually?

Answer 1

Dear student,

$$\begin{gathered} LetMohaninvestedRsPinabank \\ then, \\ A=P{\left(1+\frac{R}{100}\right)}^T \\ 1323=P{\left(1+\frac{5}{100}\right)}^2 \\ 1323=P{\left(1+\frac{1}{20}\right)}^2 \\ 1323=P{\left(\frac{21}{20}\right)}^2 \\ P=\frac{1323\times 20\times 20}{21\times 21} \\ P=\frac{63\times 20\times 20}{1\times 21} \\ P=\frac{3\times 20\times 20}{1\times 1} \\ P=3\times 400 \\ P=Rs1200 \\ Thus,MohaninvestedRs1200inabank \end{gathered}$$

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