1.

On what principal will the compound interest at 5% per annum for 2 years compounded annually be Rs. 164 ?​

Answer»

Step-by-step explanation:

Let the sum be Rs.x

We know that

CI=A−P

CI=P(1+

100

R

)

N

−P

CI=P[(1+

100

R

)

n

−1]

164=x[(1+

100

5

)

2

−1]

164=x[(1.05)

2

−1]

x=

0.1025

164

x=1600

Thus, required sum is Rs.1600.



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