Question

A certain sum of money is invested at the rate of 10%per compound interest the interest compunded annually. If the difference between the interestof third year and first year is rs.1105, find the sum of invested

Answer 1

Answer:

Step-by-step explanation:

A = P(1+ 10/100)1 = 1.1P A = P(1.1)2 = 1.21P A = P(1.1)3 = 1.331P So, C.I of ist year = 1.1P – P = 0.1P C.I of 2 year = 1.21P – P = 0.21P So, C.I of 2nd year = 0.21P – 0.1P = 0.11P C.I of 3 year = 1.331P – P = 0.331P C.I of 3rd year= 0.331P – 0.21P = 0.121P So, Difference between C.I of ist and 3rd year = 0.121P – 0.1P = 0.021P 1105 = 0.021P So, P = Rs. 52619.05