Question

What sum of money will amount to Rs. 5,445 in 2 years at 10% per annum compound interest?

Answer 1

Let sum of money be ${}^{\prime }{P}^{\prime }$.

Amount ${}^{\prime }{A}^{\prime }=5445$

$T=2$

$R=10$%

$A=P{(1+\frac{R}{100})}^T$

$\Rightarrow 5445=P{(1+\frac{10}{100})}^2$

$=P{\left(\frac{11}{10}\right)}^2$

$\Rightarrow P=\left(5445\right)\times {\left(\frac{10}{11}\right)}^2$

$=4500$

Hence, Sum of Money $=Rs4500$.