Question
Ankit placed some money in a fixed deposit that provides
a compound interest rate of 16% per annum, compounded yearly. At the end of two years, he received a total amount of Rs. 2,523. Determine the initial amount he invested.Solution
ATQ,
Let the principal amount be Rs. ‘x’. ATQ; 2523 = x × (1.16)2 Or, x = 1875 Therefore, the money invested = Rs. 1,875
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