Question

Find the principal amount for the rate of interest 10% p.a., time 3 years and compound interest earned
is 993.
5% p.a. ​

Answer 1

Answer:

Rate of interest, r = 10% =

100

10

=0.1

Time period, t⇒3years.

number of times compounded yearly, n = 1.

compounded interest = Rs 993.

∴ Amount A = principal + compound interest

= P + 993.

we know, A =P(1+

n

r

)

nt

P+993=P(1+

1

0.1

)

3

P+993=P(1.1)

3

P+993=1.331P.

⇒993=1.331P−P

⇒0.33P=993.

⇒P=

0.331

993

⇒P=Rs3000