Method and examples
Compound Interest
Problem 4 of 10

4. What sum of money becomes Rs in years at % per annum, compounded annually ?
 
 
 
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Compound Interest
4. What sum of money becomes Rs 9261 in 3 years at 5 % per annum, compounded annually ?

Here A = "Rs" 9261, R = 5%, N = 3 years

A = P (1 + R/100)^N

9261 = P ( 1 + 5 / 100 ) ^ 3

9261 = P ( 105 / 100 ) ^ 3

9261 * ( 100 / 105 ) ^ 3 = P

P = 8000

:. The sum is 8000.





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