Question
A certain sum of money is amount to Rs. 62500 in 3 years
at 25% per annum compounded annually, what is the sum of money?Solution
Amount = Rs. 62500
R = 25% per annum
Let principal is Rs. P
We know that
Amount = P(1 + R/100) T
62500 = P (1 + 25/100) 3
P = 62500 * 64/125
P = Rs. 32000
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