Question
A certain sum invested in compound interest (compounded
annually) grows to 5040 in three years. If the rate of interest is 25% for the first year, 40% for the second year, and 50% for the third year, then what is the sum?Solution
Given - A= 5040, r₁=25%, r₂=40%, r₃=50% P=? So now - A=P[1+r₁/100] [1+r₂/100] [1+r₃/100] 5040=P [1+25/100] [1+40/100] [1+50/100] 5040=P [125/100] [140/100]]150/100] P = [5040×1000000]/125×140×150 =5040×80/14×15 =403200/210=40320/21 P=1920
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