Question 73

What sum will amount to ₹24494.40 in 2 years at 8 % per annum, if compound interest is compounded annually?

Solution

A = amount

P = principal amount

R = rate of interest

T = time

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

$$24494.40 = P\left(1+\frac{8}{100}\right)^2$$

$$24494.40=P\left(\frac{108}{100}\right)^2$$

$$24494.40=\frac{11664P}{10000}$$
$$2.1=\frac{P}{10000}$$

P = ₹21000

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