A certain sum amounts to Rs 5832 in 2 years at 8% compounded interest.

Question:

A certain sum amounts to Rs 5832 in 2 years at 8% compounded interest. Find the sum.

Solution:

Let the sum be P.

Thus, we have :

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

$5,832=\mathrm{P}\left(1+\frac{8}{100}\right)^{2}$

$5,832=1.1664 \mathrm{P}$

$\mathrm{P}=\frac{5,832}{1.1664}$

= 5,000

Thus, the required sum is Rs 5,000 .

 

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