Question 141

The compound interest earned by Suresh on a certain amount at the end of two years at the rate of 8 p.c.pa was Rs 1,414.40. What was the total amount that Suresh got back at the end of two years in the form of principal plus interest earned ?

Solution

Let the principal be P.

Hence, compound Interest = $$P(1+8\%)^2$$ - P = 1.1664P - P = 0.1664P = 1414.4

P = 1414.4/ 0.1664 = 8500

Hence, Amount = 8500 + 1414.4 = 9914.4

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