Question

What sum of money will amount to 9261 in 3 yrs at5 percent pe annum compound interest? Please expalain last step why when 9261(21/20)to the power 3, in next step it is reversed as 9261.20/21.20/21.20/21

Answer 1

Amount= 9261

$a = p(1 + \frac{r}{100} ) {}^{t}$

P=?

R= 5%

T= 3 years

Equating this we get,

9261= p (1+ 5 )^3

100

9261= p×21/20×21/20×21/20

Transporting '21/20' to the other side, it becomes 20/21

therefore P= 9261×20/21×20/21×20/21

P= 8000