Question

what sum of money will amount to rupees 21296 in 3 years at 10% per annum compounded annually


the answer should be 16000
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Answer 1

Amount = 21296

Term = 3 Years

Rate p.a = 10%

CI Amount formula = P(\frac{100+R}{100} )^3

21296=P(\frac{110}{100})^3\\

\frac{21296}{P}=(\frac{110}{100})^3\\

\frac{21296}{P}=\frac{1331}{1000}

\frac{21296}{P}=\frac{1331*16}{1000*16} (as 1331 * 16 = 21296)

\frac{21296}{P}=\frac{21296}{16000}

∴ Principle = 16000