Question

A certain amount of money invested at 10% per annum compound interest for two years became Rs. 2000. What is the initial investment?

Accepted Answer

C. Formula: $A = P\left(1 + \frac{r}{100}ight)^n$ $$2000 = P(1.1)^2 = 1.21 P$$ $$P = \frac{2000}{1.21} \approx 1652.89 \approx 	ext{Rs. 1,653.}$$

Compound interest initial investment

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