Question
A certain sum of money yields Rs.1261 as compound
interest for 3 years at 5% per annum. Find the sum.Solution
CI = Rs. 1261 ∴ A = CI + P = 1261 + P T = 3 years, R = 5% ⇒ 1261 + P = P [1 + (5/100)3] ⇒ 1261 + P = P × 1.053 ⇒ 1261 = 1.157625P – P ⇒ P = Rs.8000
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