Question
A invest Rs. X at 10% compound interest for 3 years. If
difference between the interest of 3rd year and 2nd year is Rs. 1210, find the value of X.Solution
Let the sum invested be 1000k. Amount after 1 year = 1000k × 1.1 = 1100k Sum after 2 years = 1100k × 1.1 = 1210k Interest of 2nd year = 1210k – 1100k = 110k Sum after 3 years = 1210k × 1.1 = 1331k Interest of 3rd year = 1331k – 1210k = 121k => 121k – 110k = 1210 ⇒ 11k = 1210 ⇒ k = 110 Hence, X = 1000 × 110 = Rs. 110000
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