Question 8

A sum of money amounts to Rs. 6655 at the rate of 10% compounded annuallly for 3 years. The sum of money is

Solution

Let the sum of money = $$Rs. 1000x$$

Rate of interest under compound interest = 10% and time = 3 years

Amount = $$P(1+\frac{R}{100})^T=6655$$

=> $$1000x(1+\frac{10}{100})^3=6655$$

=> $$1000x(\frac{11}{10})^3=6655$$

=> $$1000x \times \frac{1331}{1000}=6655$$

=> $$1331x=6655$$

=> $$x=\frac{6655}{1331}=5$$

$$\therefore$$ Sum = $$1000 \times 5=Rs. 5000$$

=> Ans - (A)

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