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Find the sum, invested at 10% compounded annually, on which the interest for third year exceeds the interest of first year by 252.
Let the principal amount (P) be x.
Now, we consider two cases.
P = x
Rate of interest (R) = 10%
Time (n) = 3 years
Therefore,
Compound interest (C.I) = {P (1+R/100)^n}-P
=> C.I.
= {x(1+10/100)³} - x
= {x (100+10/100)³} - x
= {x(110/100)³} - x
= {x(11/10)³} - x
= {1331x/1000} - x
= 1331x - 1000x/1000
= 331x/1000 [Equation 1]
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P = x
R = 10%
n = 1 year
Therefore,
C.I.
= {P (1+ R/100)^n} - P
= {x(1+10/100)¹} - x
= {x(110/100)¹} - x
= {x(11/10)¹} - x
= 11x/10 - x
= 11x-10x/10
= x/10 [Equation 2]
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Now, according to question,
331x/1000 = x/10 + 252
=> 331x/1000 - x/10 = 252
=> 331x-100x/1000 = 252
=> 231x/1000 = 252
=> 231x = 252 × 1000
=> 231x = 252000
=> x = 252000/231
=> x = 1091 (approx)
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Hence, the sum is 1091 Rs.
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Your answer is
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