Question

A certain sum when invested at 5% interest compounded annually for 3 years yields an interest of rs.2522. Find principal

Answer 1

Answer:

Principal is Rs. 16000

Step-by-step explanation:

Given:

Rate of compound interest = 5%

Time = 3 year compounded annually

Interest = Rs. 2522

To find: Principal

let x be the principal.

According tot the question,

$A=P(1+\frac{R}{100})^n$

$x+2522=x(1+\frac{5}{100})^3$

$x+2522=x(\frac{105}{100})^3$

$x+2522=\frac{9261x</p><p>}{8000}​$

$x-\frac{9261x</p><p>}{8000}​=-2522$

$\frac{8000x-9261x</p><p>}{8000}​=-2522$

$-1261x=-2522\times8000$

$-1261x=-20176000$

x = 16000

Therefore, Principal is Rs. 16000