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      Question

      Manoj deposited a sum of money in a scheme that offers

      10% annual compound interest for a period of three years. If the total interest he earned at the end of three years is β‚Ή10,261, determine the principal amount he invested.
      A Rs. 30,000 Correct Answer Incorrect Answer
      B Rs. 32,000 Correct Answer Incorrect Answer
      C Rs. 29,000 Correct Answer Incorrect Answer
      D Rs. 31,000 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Let the amount invested by Manoj = Rs. x So the interest earned by Manoj after three years = x Γ— {(1 + 0.10)3 – 1} = 10261 0.331x = 10261, x = 31000 So, the amount invested by Manoj = Rs. 31000

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