A sum amounts to Rs. 23762 in 2 years at 9% per annum, compounded annually. Find the sum.
Let sum = P
Amount (A) = Rs.23762
Interest rate = 9 % per annum
Time = 2 years
Now,
Amount (A) = P (1 + R/100)n [Where, P = Present value
R = Annual interest rate
n = Time in years]
∴ A = P(1 + 9/100)2 2
⇒ 23762 = P (109/100)2
⇒ 23762 = P × 11881/10000
⇒ P = 23762 × 10000/11881
⇒ P = 2 × 10000
⇒ P = 20000
∴ Sum = Rs.20000