Ram invested 45% of his salary in a scheme for 3 years which offers 10% per annum compound interest, compounded annually. If he receives ₹5,958 as total interest, then find Ram's salary?

Ram invested 45% of his salary in a scheme for 3 years which offers 10% per annum compound interest, compounded annually.

Let's assume the salary of Ram is '100y'.

Invested amount in the scheme = 100y of 45%

= $$100y\times\frac{45}{100}$$

= 45y

Interest after 3 years = ₹5,958

45y of (100+10)% of (100+10)% of (100+10)% - 45y = 5958

45y of 110% of 110% of 110% - 45y = 5958

$$45y\times\frac{110}{100}\times\frac{110}{100}\times\frac{110}{100}-45y=5958$$

$$y\times1.1\times1.1\times1.1-y = 132.4$$

331y = 132400
y = 400

Ram's salary = 100y = $$100\times400$$

= ₹40,000