Question

26
A sum of money amounts to Rs. 14,680 in 3 years @5.5% p.a. compound
interest. Find the sum​

Answer 1

Given:

• Amount = Rs. 14.680
• Rate = 5.5 %
• Time = 3 years

What To Find:

We have to find the principal.

How To Find:

To find principal we will use,

$\sf{A = P \bigg(1 + \dfrac{R}{100} \bigg)^T}$

Where

• A = Amount
• P = Principal
• R = Rate
• T = Time

Solution:

Using the formula,

⇒ $\sf{A = P \bigg(1 + \dfrac{R}{100} \bigg)^T}$

Substitute the values,

⇒ $\sf{14,680 = P \bigg(1 + \dfrac{5.5}{100} \bigg)^3}$

Convert the fraction into decimal,

⇒ $\sf{14,680 = P (1 + 0.055 )^3}$

Solve the brackets,

⇒  $\sf{14,680 = P (1.055 )^3}$

Take 1.055³ to LHS,

⇒ $\sf{\dfrac{14,680}{(1.055 )^3} = P}$

Similply the fraction,

⇒ Rs. 12,501.6885 = P

Appox the value,

⇒ Rs. 12,502 = P

∴ Thus, the principal is Rs. 12,502.