On what sum will the compound interest at 5% per annum for 2 years com

1.	On what sum will the compound interest at 5% per annum for 2 years compounded annually be Rs 164?
Answer» Given, Rate of interest= 5% p.a Time = 2 years Compound interest = Rs.164 Let principal = P By applying formula , Compound interest \(={P}[({1}+\frac{R}{100})^T-{1}]\) \(={P}[({1}+\frac{5}{100})^2-{1}]\) = 164 \(={P}[(\frac{21}{20})^2-{1}]\) = 164 \(={P}\times\frac{41}{400}\) = 164 \(={P}=\frac{164\times400}{41}\) =Rs. 1600 Hence, Principal = Rs. 1600.

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

Answer»

Given,

Rate of interest= 5% p.a

Time = 2 years

Compound interest = Rs.164

Let principal = P

By applying formula ,

Compound interest \(={P}[({1}+\frac{R}{100})^T-{1}]\)

\(={P}[({1}+\frac{5}{100})^2-{1}]\) = 164

\(={P}[(\frac{21}{20})^2-{1}]\) = 164

\(={P}\times\frac{41}{400}\) = 164

\(={P}=\frac{164\times400}{41}\) =Rs. 1600

Hence,

Principal = Rs. 1600.