Question

the amount of certan principal is rs 6655 in 3 years, compounded annually at the rate of 10 p.c.p.a. find the principal

Answer 1

The principal value is Rs 5,000.

Step-by-step explanation:

We are given that the amount of certain principal is Rs 6,655 in 3 years, compounded annually at the rate of 10% p.a.

Let P = Principal sum of money

    R = Rate of interest

    T = Time period

    A = Amount of money

As we know that the formula for calculating amount in case of compound interest is given by;

                          $\text{Amount}=\text{Principal} \times (1+\text{Rate of interest})^{\text{Time}}$

                                                 Or

                                $A=P\times (1+R)^{T}$

Now, in the question we are provided with A = Rs 6,655 ,R = 10%  and Time period, T = 3 years.

So, putting values in above equation we get;

                                $6,655=P\times (1+\frac{10}{100} )^{3}$

                                $6,655=P\times (1+0.10 )^{3}$

                                 $6,655=P\times (1.10 )^{3}$

                                 $6,655=P\times 1.331$

                                  $P = \frac{6,655}{1.331}$

                                  P = Rs 5,000

Therefore, the Principal at which the amount becomes Rs 6,655 in 3 years, compounded annually at the rate of 10% p.a. is Rs 5,000.

Answer 2

Step-by-step explanation:

We are given that the amount of certain principal is Rs 6,655 in 3 years, compounded annually at the rate of 10% p.a.

Let P = Principal sum of money

R = Rate of interest

T = Time period

A = Amount of money

As we know that the formula for calculating amount in case of compound interest is given by;

\text{Amount}=\text{Principal} \times (1+\text{Rate of interest})^{\text{Time}}Amount=Principal×(1+Rate of interest)

Time

Or

A=P\times (1+R)^{T}A=P×(1+R)

T

Now, in the question we are provided with A = Rs 6,655 ,R = 10% and Time period, T = 3 years.

So, putting values in above equation we get;

6,655=P\times (1+\frac{10}{100} )^{3}6,655=P×(1+

100

10

)

3

6,655=P\times (1+0.10 )^{3}6,655=P×(1+0.10)

3

6,655=P\times (1.10 )^{3}6,655=P×(1.10)

3

6,655=P\times 1.3316,655=P×1.331

P = \frac{6,655}{1.331}P=

1.331

6,655

P = Rs 5,000

Therefore, the Principal at which the amount becomes Rs 6,655 in 3 years, compounded annually at the rate of 10% p.a. is Rs 5,000.