Question

By using the formula, find the amount and compound interest on:

What sum of money will amount to Rs 21296 in 3 years at $10\%$ per annum, compounded annually ?

Answer 1

$\text{Amount (A) = Rs. 21296}\text{Rate (r)}=10\%p.a.\text{Period (n) = 3 years}\text{Let P be the sum, The}A=P{(1+\frac{r}{100})}^n\Rightarrow 21296=P{(1+\frac{10}{100})}^3\Rightarrow 21296=P{\left(\frac{11}{10}\right)}^{3}P=Rs.21296\times {\left(\frac{10}{11}\right)}^3=21296\times \frac{10}{11}\times \frac{10}{11}\times \frac{10}{11}=Rs.16000\therefore \text{Sum = Rs. 16000 Ans.}$