Question

A sum of money amounts to Rs.14680 in [email protected]%p.a.compound interest.Find the sum​

Answer 1

Answer:

Sum = Rs. 12,502 .

Step-by-step explanation:

We are given that a sum of money amounts to Rs.14680 in 3 years @5.5% p.a. compound interest.

So, formula for calculating amount using compound interest is given by;

                           A = P * $[1+r]^{T}$   where, A = Amount

                                                                   P = Principal

                                                                   r = Rate of Interest

                                                                   T = Time period

Now, putting values in the above expression;

                     ⇒  14680 = P * $[1+\frac{5.5}{100} ]^{3}$

                     ⇒  14680 = P * $(1.055)^{3}$

                     ⇒  P = $\frac{14680}{(1.055)^{3} }$ = Rs. 12,501.688 ≈ Rs. 12,502 .

Therefore, the Principal sum is Rs. 12,502 .