Question

A certain sum of money at the rate of 10% per annum compounded interest ,the interest is compounded anually.if the difference b/w the interests of third year amd first year is Rs.1105,find the sum invested

Answer 1

Formula for compound interest,
amount = P(1+r/100) raise to power n
P: principal amount
r: rate if interest
n: no of years
acc to ques,
P(1+10/100) cube - P(1+10/100) =1105
P1(1.1) cube-(1.1))=1105
P(1.313-1.1)=1105
P=1105/0.231=49.78