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RD Sharma Solutions Class 8 Mathematics Solutions for Compound Interest Exercise 14.2 in Chapter 14 - Compound Interest
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A sum amounts to Rs. 756.25 at 10% per annum in 2 years, compoundedannually. Find the sum.
Answer:
Given details are,
Rate = 10 % per annum
Amount = Rs 756.25
Time (t) = 2 years
By using the formula,
A = P (1 + R/100)^n
756.25 = P (1 + 10/100)^2
P = 756.25 / (1 + 10/100)^2
= 756.25/1.21
= 625
∴ The principal amount is Rs 625
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