wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

What sum will become Rs 2025 in 2 years at 12.5% per annum compound interest?

Open in App
Solution

For a given principle (P) invested at r% for a time period of n years at compound interest per annum given an amount (A)
A=p(1+r100)n

here, A=Rs.2025 r=12.5% n=2year
2025=p(1+12.5100)2

2025=p(11251000)2
2025=p×1.265625

p=26251.265625=1600

Rs.1600 will yield Rs.2025 when invested at 12.5% for 2year compund interest.
Hence, the answer is Rs.1600.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Simple and Compound Interest
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon