Question

What sum of money will amount to Rs 45582.25 at $6\frac{3}{4}\%$ per annum in two years, interest being compounded annually?

Answer 1

$$\begin{gathered} \mathrm{A}=\mathrm{P}{\left(1+\frac{\mathrm{R}}{100}\right)}^{\mathrm{n}} \\ 45,582.25=\mathrm{P}{\left(1+\frac{27}{400}\right)}^2 \\ \mathrm{P}{\left(1.0675\right)}^2=45,582.25 \\ \mathrm{P}=\frac{45,582.25}{1.13955625} \\ \mathrm{P}=40,000 \\ \mathrm{Thus},\mathrm{the}\mathrm{required}\mathrm{sum}\mathrm{is}\mathrm{Rs}40,000. \end{gathered}$$