Let the principal be Rs. x, Now, CI = P [ ( 1 + R/100 )ᵀ - 1] ⇒ 8334 = x [ ( 1 + 15/100 )³ - 1 ] ⇒ 8334 = x [ ( 115/100 )³ - 1 ] ⇒ 8334 = x ( 12167/8,000 - 1 ) ⇒ 8334 = x ( (12167 - 8,000)/8,000 )= 4167/8,000 x x = (8334 × 8,000)/4167 = Rs. 16,000 ∴ The principal amount is Rs. 16,000. Now, CI= 16,000 [ ( 1 + 10/100 )4 - 1] ⇒ CI = 16000 [ (11/10 )4 - 1 ] ⇒ CI = 16000 [ (14641/10000 ) - 1 ] ⇒ CI = 16000 [ 1.4641 - 1 ]= 16000 x 0.4641 ⇒ CI = 7425.6
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