Question

A certain sum of money amounts to ₹6655 in 3 years, compounded annually at the rate of 10% per annum. Find the sum.

• A. 5000

Answer 1

The correct option is A 5000
$\text{Given: Amount (A) = ₹6655}\text{Time(T) = 3 years, Rate(R) = 10 \% p.a}$

Using the formula,
$A=P(1+\frac{R}{100}{)}^T$

On substituting the values, we get,
$₹6655=P(1+\frac{10}{100}{)}^3₹6655=P(\frac{11}{10}{)}^3\frac{₹6655\times {10}^3}{11\times 11\times 11}=P₹5000=P$

$\therefore \text{The principal is ₹5000.}$