Question
If a sum invested at compound interest of 25% p.a.,
compounded annually becomes Rs. 18,750 after 2 years, then find the sum invested.Solution
Let, the sum invested be Rs. 'P'.ATQ,P X [1 + (25/100) ]2Â = 18750Or, P X (5/4)Â 2Â = 18750Or, P X (25/16) = 18750Or, P = 18750 X (16/25)Or, P = 12000So, the sum invested = P = Rs. 12,000
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