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in Compound Interest by (28.9k points)
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A sum amounts to Rs. 756.25 at 10% per annum in 2 years, compounded annually. Find the sum .

1 Answer

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Best answer

Given, 

Amount = Rs.756.25 

Rate = 10% p.a 

Time = 2 years 

Let principal = P 

So,

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

\(={P}[({1}+\frac{10}{100})^2]\) = 756.25

\(={P}\times\frac{121}{100}\) = 756.25

\(={P}=\frac{756.25\times100}{121}\) = Rs 625

Hence, 

Principal = Rs.625

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