Question

7. A sum of money is invested for 3 years at a rate of 10% interest compounded annually. If the sum
of money grows by Rs 5296 then find the sum of money invested.​

Answer 1

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GIVEN:-

Years = 3

Interest = 10%

Amount = 5296.

TO FIND:-

find the sum of money invested.

SOLUTION:-

Let the Sum be P.

A = P( 1 + 10/100 )³

A = P + 5296.

P + 5296 = P( 1 + 10/100 )³

P = ₹16,000.

• I Hope it's Helpful My Friend.

Answer 2

Given:–

• Rate = 10%
• Time = 3 years
• Interest = Rs. 5296

To find:–

• Sum of money invested or Principal

Formulas used:–

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

where,

• A = Amount

• P = Principal

• r = rate

• n = Time

Assumptions:–

• Let Principal or sum of money invested be y

Step by step explaination:–

☯ As we know sum of money or Principal is y.

Thus amount would be as follows:

Amount = Principal + Interest

$\implies\text{A} \: = y + 5296$

☯ Using the given formula of amount we are going to calculate the principal.

And evaluating values...

$\implies \: y + 5296 = y(1 + \dfrac{10}{100} ) {}^{3}$

$\implies \: y + 5296 = y( \dfrac{11}{10}) {}^{3}$

$\implies \: y + 5296 = y \times \dfrac{11}{10} \times \dfrac{11}{10} \times \dfrac{11}{10}$

$\implies \: y + 5296 = y \times \dfrac{1331}{1000}$

$\implies \: 1331y \: = \: 1000y + 5296000$

$\implies \: 1331y - 1000y = 5296000$

$\implies \: 331y = 5296000$

$\implies \: y = \dfrac{5296000}{331}$

$\implies \: y = 16000$

Answer:–

Sum of money invested is Rs. 16000

Extra information about the given terms:-

• The money borrowed is called the Principal, the extra money paid for using lender's money is called the interest and the total money, paid to the lender at the end of the specified period is called the amount.

• When we say, interest, it always means simple Interest.

• On the same sum and at the same rate of interest per annum, the interest of every year is same.