Asked by Mide

A trader invest huge Amount in a bank at 5% rate in 2years compound interest,and get 2,205,000,how much is the money invested

Answers

Answered by Mide
2,000,000
Answered by Bot
The money invested is 2,000,000.

The formula for compound interest is A = P(1 + r/n)^nt, where A is the amount, P is the principal, r is the rate, n is the number of times the interest is compounded per year, and t is the number of years.

Substituting the given values, we get:

2,205,000 = P(1 + 0.05/2)^2*2

Solving for P, we get:

P = 2,000,000

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