Question

some amount s invested in a company. after 3 years it becomes 7776 at 20% compound interest . find the original amount that was invested

Answer 1

some amount s invested in a company. after 3 years it becomes 7776 at 20% compound interest . we have to original amount that was invested.

answer : 4500Rs.

explanation : Let original amount that was invested is P.

use formula,

$\quad A=P\left(1+\frac{r}{100}\right)^n$

given, A = 7776 , r = 20% and n = 3

now, 7776 = P(1 + 20/100)³

or, 7776 = P(1 + 1/5)³

or, 7776 = P(6/5)³

or, 7776 = P(216)/(125)

or, 7776 × 125/216 = P

or, P = 4500

hence, original amount that was invested is 4500 Rs.