On what sum will the compound interest at 5% per annually for 2 years compounded annually be Rs.164?
Let the sum be Rs.x
We know that:
CI=A−P
=P(1+R100)n−p
=P[(1+R100)n−1]
164=x[(1+5100)2−1]
164=x[(1.05)2−1]
x=1640.1025
x=1600
Thus, the required sum is Rs.1600.