Question
The amount in a bank account after 3 years is ₹1350
when the interest is compounded annually at a rate of 10%. What was the principal amount?Solution
Let the principal amount be P. The formula for compound interest is: Amount = P(1 + r/100)ᵗ , where r = 10%, t = 3 years, and the amount is ₹1350. Substitute into the formula: 1350 = P(1 + 10/100)³ 1350 = P(1.1)³ 1350 = P × 1.331 Now, solve for P: P = 1350 / 1.331 = ₹1014.3 (approximately ₹1014) Therefore, the principal amount is ₹1014. Correct option: a
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