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 .