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A certain sum when invested at 5% interest compounded annually for 3 years yields an interest of Rs. 2,522. Find the Principal?
- ARs. 12,522
- BRs. 15,200
- CRs. 16,000
- DRs. 17,200
Answer not set
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CCommunity
We know the formula for compound interest -
Where, $(\Rightarrow {\bf{CI}}\; = \;\left[ {{\bf{P}}\left\{ {{{\left( {1\; + \;\frac{{\bf{R}}}{{100}}} \right)}^t} - 1} \right\}} \right])$
CI = Compound interest
P = Principal
R = Rate of interest
t = Time period
$(\begin{array}{l} 2522 = {\rm{\;}}\left[ {{\rm{P}}\left\{ {{{\left( {1\; + \;\frac{5}{{100}}} \right)}^3} - 1} \right\}} \right]\\ \Rightarrow {\rm{P\;}} = {\rm{\;}}\frac{{2522}}{{{{1.05}^3} - 1}}{\rm{\;}} = {\rm{\;Rs}}.16000 \end{array})$
∴ Principal = Rs. 16,000
Where, $(\Rightarrow {\bf{CI}}\; = \;\left[ {{\bf{P}}\left\{ {{{\left( {1\; + \;\frac{{\bf{R}}}{{100}}} \right)}^t} - 1} \right\}} \right])$
CI = Compound interest
P = Principal
R = Rate of interest
t = Time period
$(\begin{array}{l} 2522 = {\rm{\;}}\left[ {{\rm{P}}\left\{ {{{\left( {1\; + \;\frac{5}{{100}}} \right)}^3} - 1} \right\}} \right]\\ \Rightarrow {\rm{P\;}} = {\rm{\;}}\frac{{2522}}{{{{1.05}^3} - 1}}{\rm{\;}} = {\rm{\;Rs}}.16000 \end{array})$
∴ Principal = Rs. 16,000