Question
Rohit deposited Rs. ‘x’ in a bank at 8% compound
interest per annum for 3 years, compounded annually. If he earned an interest of Rs. 2,597.12, find the value of ‘x’.Solution
ATQ,
Interest earned = x × {(1 + 0.08)³ – 1} = 2597.12
x{(1.08)³ – 1} = 2597.12
x{1.2597 – 1} = 2597.12
0.2597x = 2597.12
x = 10000
So, the value of x is Rs. 10,000
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