Question

On what sum will the compound interest at 7 1/2% per annum for three years Compounded annually be 3101.40?

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Answer 1

Answer:

12800

Step-by-step explanation:

Let the Sum be P.

Given, R = 7 1/2% = (15/2)%, Time = 3 years, C.I = 3101.40.

Calculation of Sum:

CI = P(1 + r/100)ⁿ - P

⇒ 3101.40 = P[(1 + r/100)ⁿ - 1]

⇒ 3101.40 = P[(1 + 15/200)³ - 1]

⇒ 3101.40 = P[(215/200)³ - 1]

⇒ 3101.40 = P(0.2423)

⇒ P =  ~12800

Therefore, Sum is 12800.

Hope it helps!

Answer 2

Given:

Rate of interest = $7\frac{1}{2}\%=\frac{15}{200}$

Time = 3 years

Compound interest = 3101.40

To Find :

What is sum?

Solution:

Let the sum be x

We are given that compound interest is 3101.40

Amount = Principal+Interest

Amount = x+3101.40

Formula:

$A=P(1+r)^t$

A = Amount

P = Principal

r = rate of interest in decimals

t = time

Substitute the values in the formula:

$x+3101.40=x(1+\frac{15}{200})^3\\x+3101.40=1.2422x\\3101.40=0.2422x\\x=12800$

Hence The sum is Rs.12800