what Principal will the Compound Interest for 3 Years :

On what principal will the compound interest for 3 years at 5% per annum compound annually is ₹ 63.05?

  1. ₹ 400
  2. ₹ 600
  3. ₹ 300
  4. ₹ 800
Anurag Mishra Professor Asked on 12th October 2015 in Maths.
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  • 1 Answer(s)

    Answer: (1) Rs.400

    Explanation:-
    Let the principal be Rs. X

    Given-
    Time = 3 years, Rate = 5% & Compound Interest = Rs. 63.05

    Formula-
    Compound Interest = P{(1 + R/100)t – 1}
    Where, P = principal, R = rate & t = time

    63.05 = P{(1 + 5/100)3 – 1}
    63.05 = P {(1 + 1/20)3 – 1}
    63.05 = P {(21/20)3 – 1}
    63.05 = P {21 x 21 x 21/20 x 20 x 20 – 1}
    63.05 = P{9261/8000 – 1}
    63.05 = P (9261 – 8000)/8000
    63.05 = 1261 P/8000
    P = 63.05 x 8000/1261
    P = 6305 x 80/1261
    P = 504400/1261
    P = Rs. 400

    Then, the principal is Rs. 400.

    Hence, the answer is (1) Rs. 400.

    Anurag Mishra Professor Answered on 14th October 2015.
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