Question

What sum of money at compound interest will amount to Rs. 6930 in 3 years, if the rate of interest is
the first year, 10% for the second year and 20% for the third year?​

Answer 1

Answer:

Let the sum of money be Rs. P

Here, r=10% per annum and n=2 years

A=Rs.5445

Then

A=P(1+

100

r

)

n

5445=P(1+

100

10

)

2

5445=P(1.1)

2

P=

1.21

5445

P= Rs.4500

Hence the sum of money is Rs.4500