Question
A certain sum on compound interest becomes ₹56,180
when compounded annually after 2 years and ₹59,550.80 after 3 years Find the sum (in ₹).Solution
Amount at the end of the second year, A2 = 56,180 Amount at the end of the third year, A3 = 59,550.80 Hence, interest incurred during the second year to the third year = 59,550.80- 56,180 = ₹3370.8 Let the principal sum be Rs. P and the rate of interest be R%. CI of the first year = SI of the first year 3370.8= (56180xRx1)/100 (': for the second year, the principal amount should be Rs. 56,180) R = 6% According to the question, P (1 + 6/100)2 = 56,180 P=50000 The principal amount is ₹50000.
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