Salma
invested a certain amount of money in a bank which gives an interest rate of
10% compounded annually. How much did she invest at the start if she got 5000
sh at the end of 2 years?

**solution**
n=2, t=1,
R=10%, A

_{2}=5000, P=?
A

_{n}= P(1 +^{RT}/100)^{n}
A

_{2}= P(1 +^{(10x1)}/100)^{2}
A

_{2}= P(1 +^{10}/100)^{2}
A

_{2}= P(^{100}/100 +^{10}/100)^{2}
A

_{2}= P(^{110}/100)^{2 }But A_{2}=5000,
5000 =
P(1.1)

^{2 }
5000 = 1.21P

__5000__=

__1.21P__

1.21 1.21

__5000__= P

1.21

P = 4132.23 (to
2 d.p.)

__Hence at the start she invested Tsh 4132.23__

__TRY THIS……….__
Salome
invested a certain amount of money in a bank which gives an interest rate of 5%
compounded annually. How much did she invest at the start if she got 12,000 sh
at the end of 2 years?

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