Question

A certain sum of money is invested at the rate of rate of 10 percent per annum compound intrest , the intrest is compounded annually. if the difference between interest of third year and first year is RS 1105, find the sum instead.

Answer 1

Compound interest

Interest percent for 1st year = 10%

I----------------------------2nd year =11%

I................................... 3rd year 12.1 %

ATQ

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Interestof 3rd year -Interest of1st=1105

(P×12.1/100) -(P×10/100) =1105

Or,P(12.1-10/100) =1105

Or,(P×2.1)/100 =1105

Or,P= (1105/2.1) ×100

P=52619.04 rupees