Question 69

A sum invested at compound interest (compounded annual) amounts to ₹ 750 at the end of first year and ₹ 900 at the end of second year. What is the sum?

Solution

difference in the sum of second year and first year 900-750 is 150

So rate of interest =

$$\frac{150}{750}\times 100$$

= $$20\%$$

Consider 100 as the initial amount .

= 100 + 20 = 120

120 = amount after first year which is equal to 750

Now

$$750 = 120$$

1 = 6.25

100 = $$\frac{6.25}{100}$$

= 625

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