Sum of money amounts to Rs 453690 in 2 years at 6.5% per annum compounded annually.

Question:

Sum of money amounts to Rs 453690 in 2 years at 6.5% per annum compounded annually. Find the sum.

Solution:

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

$453,690=\mathrm{P}\left(1+\frac{6.5}{100}\right)^{2}$

$\mathrm{P}(1.065)^{2}=453,690$

$\mathrm{P}=\frac{453,690}{1.134225}$

$\mathrm{P}=400,000$

Thus, the required sum is Rs 400,000 .

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