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 ₹10,261, determine the principal amount he invested.Solution
Let the amount invested by Manoj = Rs. x So the interest earned by Manoj after three years = x × {(1 + 0.10)3 – 1} = 10261 0.331x = 10261, x = 31000 So, the amount invested by Manoj = Rs. 31000
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