Question

On what sum will the compound inerest at 7 1/2% per annum for three years compounded annually be $=3,101.40

Answer 1

Answer:

The Principal or sum is $12808.25.

Step-by-step explanation:

Rate = 7 1/2% p.a = 15/2% p.a = 7.5% p.a

Time = 3 years

Compound Interest = $ 3101.40

C.I = P(1+r/100)ⁿ - P

= 3101.40 = P(1+7.5/100)³ - P

= 3101.40 = P(1+0.075)³ - P

= 3101.40 = (P*1.075*1.075*1.075) - P

= 3101.40 = 1.24229687P-P

= 3101.40 = 0.24229687P

= P = $12808.25

Hope this helps.