Question
A sum of money was invested at
10% p.a. compound interest (compounded annually), and it amounted to Rs. 6050 at the end of 2 years. Find the original sum.Solution
ATQ,
Let the principal amount be Rs. P. So, 1.10 × 1.10 × P = 6050 P = [6050/(1.10 × 1.10)] = 5000. Hence, the original sum is Rs. 5000.
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