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