1.

The amount of a certain principal is ₹6655 in 3 years, compounded annually at the rate of 10 p.c.p.a. Find the principal.

Answer»

Let PRINCIPAL is P
interest rate , r = 10 % PER annual
time PERIOD , n = 3
Amount , A = 6655

USE formula , A = P(1 + r/100)ⁿ
6655 = P(1 + 10/100)³
6655 = P(1 + 1/10)³ = P(11/10)³
6655 = P(1331/1000)
6655 × 1000/1331 = P
P = 6655 × 1000/1331 = 5000

HENCE, principal is ₹ 5000



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