Question

at what sum will a compound interest become 1261 at 5% per annum after 3 years

Answer 1

Principal = 1459.76

Step-by-step explanation:

Given,

Amount = 1261

Rate of interest = 5%

Time = 3yr

We know that Amount paid,when interest is compunded annually

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

where p = Principal,R= Rate of interest,T= time

$1261=P(1+\frac{5}{100})^3$

$1261=P(1+\frac{1}{20})^3$

$1261=P(\frac{21}{20})^3$

$1261=P\times \frac{9261}{8000}$

$P = \frac{1261\times 8000}{9261}$

 =  1459.76

Hence,Principal = 1459.76