Question

If rate 5% p.a., time is 3year and compound interest is Rs.2522 find the principal

Answer 1

A = P (1 + r/n) (nt)

Where:

A = the future value of the investment/loan, including interest

P = the principal investment amount (the initial deposit or loan amount)

r = the annual interest rate (decimal)

n = the number of times that interest is compounded per year

t = the number of years the money is invested or borrowed for

Hope this helps ;)