the compound interest on a certain sum at 5% p.a. for 2 yrs is 2870. find the sum. Question the compound interest on a certain sum at 5% p.a. for 2 yrs is 2870. find the sum. in progress 0 Math Madeline 1 month 2021-10-22T00:03:45+00:00 2021-10-22T00:03:45+00:00 1 Answer 0 views 0

## Answers ( )

Step-by-step explanation:Given, rate r=5%, n=2 years, compound interest = Rs. 1100

Compound interest = Amount− Principal

Therefore, 1100=P(1+

100

5

)

2

−P

⇒1100=P(1.05)

2

−P

⇒1100=1.1025P−P

⇒P=

0.05

1100

⇒P= Rs. 22000

Simple interest =

100

PRT

=

100

22000×5×2

Simple interest = Rs. 2200