A sum amounts to Rs 756.25 at 10% per annum in 2 years,

Question:

A sum amounts to Rs 756.25 at 10% per annum in 2 years, compounded annually. Find the sum.

Solution:

Let the sum be Rs $\mathrm{x}$.

Then,

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

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

$756.25=\mathrm{x}\left[\left(1+\frac{10}{100}\right)^{2}\right]$

$756.25=\mathrm{x}\left[(1.10)^{2}\right]$

$\mathrm{x}=\frac{756.25}{1.21}$

$=625$

Thus, the required sum is Rs 625 .

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