Question

If compound interest earned on a sum in 3 years at 15% pa is x find the sum

Answer 1

Compound Interest= P[(1+i)^n - 1]
where P = Principal sum

given n = 3 years

Rate of Interest Per annum = i= 15%

x = P[(1+15/100)^3 - 1]

x = P[(1 + 0.15)^3 - 1]

x = P[ (1.15)^3 -1]

x= P[1.520875 - 1]

x= P[ 0.520875]

x/0.520875 = P

(substitute x inorder to find P)