A certain sum of money is invested at the rate of 5% per annum compound interest, the interest compounded annually. If the difference between the interests of third year and first year is 102.50. Find the sum.
Answers
Answer:20000
Step-by-step explanation:Let the sum be x
rate of interest = 4%
Time = 1 year
Compound interest of first year = Amount - Principal =1.05x - x = 0.05x
When Time = 2 year
Compound interest till second year = Amount - Principal =1.1025x - x = 0.1025x
When Time = 3 year
Compound interest till third year = Amount - Principal =1.157625x - x = 0.157625x
Compound interest for third year = Compound interest till third year-Compound interest till second year
Compound interest for third year = 0.157625x-0.1025x=0.055125x
Difference between third year ci and first year ci = 0.055125x-0.05x=0.005125x
We are given that the difference between the interest of third year and first year is rupees 102.50
So,
Hence the sum is 20000
Answer:
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