What sum of money will amount to ₹ 18,150 in 2 years at 10% per annum, compounded annually?

Let sum of money be ₹ x.

Given,

P = ₹ x

r = 10%

n = 2 years

A = ₹ 18,150

By formula,

A = $P\Big(1 + \dfrac{r}{100}\Big)^n$

Substituting values we get :

$\Rightarrow 18150 = x \times \Big(1 + \dfrac{10}{100}\Big)^2 \\[1em] \Rightarrow 18150 = x \times \Big(\dfrac{110}{100}\Big)^2 \\[1em] \Rightarrow 18150 = x \times \Big(\dfrac{11}{10}\Big)^2 \\[1em] \Rightarrow 18150 = x \times \dfrac{121}{100} \\[1em] \Rightarrow x = \dfrac{18150 \times 100}{121} \\[1em] \Rightarrow x = ₹ 15,000.$

Hence, sum of money = ₹ 15,000.