Question

The sum amounted to Rs.27180 in 10 years at 10 % p.a. interest compounded annually. Find the principal​

Answer 1

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Let Principal = Rs 100

For 1st year

P = Rs 100; R = 10% and T = 1 year

Interest = Rs

100

100×10×1

= Rs 10

Amount = Rs 100 + Rs 10 = Rs 110

For 2nd year

P = Rs 110; R = 10% and T = 1 year

Interest = Rs

100

110×10×1

= Rs 11

Amount = Rs 110 + Rs 11 = Rs 121

For 3rd year

P = Rs 121; R = 10% and T = 1 year

Interest = Rs

100

121×10×1

= Rs 12.10

Sum of C.I. for 1st year and 3 rd year = Rs 10 + Rs 12.10 = Rs 22.10

When sum is Rs 22.10, principal is Rs 100

When sum is Rs. 2,652, principal = Rs

22.10

100×2652

= Rs.12,000.