#### Question

What sum of money will amount to Rs 45582.25 at \[6\frac{3}{4} %\] per annum in two years, interest being compounded annually?

#### Solution

\[A = P \left( 1 + \frac{R}{100} \right)^n \]

\[45, 582 . 25 = P \left( 1 + \frac{27}{400} \right)^2 \]

\[P \left( 1 . 0675 \right)^2 = 45, 582 . 25\]

\[P = \frac{45, 582 . 25}{1 . 13955625}\]

\[P = 40, 000\]

Thus, the required sum is Rs 40, 000.

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Solution What Sum of Money Will Amount to Rs 45582.25 at 6 3 4 per Annum in Two Years, Interest Being Compounded Annually? Concept: Rate Compounded Annually Or Half Yearly (Semi Annually).