Question

Find the principal,if the compound interest compounded anually at the rate of 10% p.a for three years is 1331

Answer 1

Principal amount (p) = ?

rate of interest = i = 10%

time = n = 3years  

Compound interest = CI = 1331

compounded Interest  = P((1+i)^n - 1)

1331=P(1 + 10/100)^3-1)

1331= P(1 + 0.1)^3-1)

1331= P(1.1)^3-1)

1331=P(1.331)-1)

1331/0.331 = P

4021 = P = Principal Amount