Question 92

A certain sum when invested at 5% interest compounded annually for 3 years yields an interest of Rs. 2,522. Find the Principal?

Solution

Share

$$A\ =\ p\left(1+\frac{r}{100}\right)^n$$

$$P+2522=P\left(\frac{105}{100}\right)^3$$

$$P+2522=1.57625P$$

$$0.57625P=2522$$

$$P=\frac{2522}{0.157625}=16000$$

Hence, principal = Rs 16000

Create a FREE account and get:

  • Download RRB Study Material PDF
  • 45+ RRB previous papers with solutions PDF
  • 300+ Online RRB Tests for Free