 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that find what sum of money will amount to $1,166.4 in two years at 8% per annum compound interest. The compound interest formula is amount A is equal to P into 1 plus R upon 100 raised to power n. With this key idea we shall proceed with the solution. According to the question we need to find what sum of money will amount to $1,166.4 in two years at 8% per annum. Let the sum of money be P, the amount after two years that is A is equal to $1,166.4 and the rate of interest R is equal to 8% per annum and the time n is equal to two years. So as we know amount A is equal to P into 1 plus R upon 100 raised to power n, this implies $1,166.4 is equal to P into 1 plus 8 upon 100 raised to power 2 which implies $1,166.4 is equal to P into 100 plus 8 upon 100 raised to power 2 which is equal to P into 108 upon 100 raised to power 2. This implies P is equal to $1,166.4 into 100 into 100 upon 108 into 108. Now here 2 into 50 is 100 and 2 into 54 is 108. Similarly 2 into 50 is 100 and 2 into 54 is 108. Again cancelling by 2, 2 into 25 is 50 and 2 into 27 is 54. So P is equal to $1,166.4 into 625 upon 27 into 27 which implies P is equal to $729,000 upon $729,000. That is P is equal to $1,000. Hence the sum of money is equal to $1,000 which is our answer. This completes our session. Hope you enjoyed the session.