1.

A sum of money is invested for 3 years at 5% per annum compound interest reckoned annually if the total interest earned be 2522 then find the sum of money

Answer»

Answer: RS 22781.25

Step-by-step explanation:

Given:

P = Rs 16000

R = 12.5 % p.a

n = 3 years

We KNOW that amount A at the end of n years at the rate R% per annum when the interest is compounded ANNUALLY is given by

A = P(1+\frac{R}{100})^{n}

A = 16000(1+\frac{12.5}{100})^{3}

A = 16000(1.125)^{3}

A = 22781.25

Thus, the required amount is Rs 22781.25



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