Question

If sum amount to Rs.1331 in 3 years, at rate of interest 10% compounded annually. Then, find the Principal.
1. Rs. 1000
2. Rs. 999
3. Rs. 800
4. Rs. 1200

Answer 1

Correct Answer - Option 1 : Rs. 1000

Given:

Amount = Rs.1331

Time = 3 years

Rate of interest = 10% compounded annually

Formula Used:

Amount = P(1 + R/100)T

Calculations:

⇒ 1331 = P × (1 + 10/100)3

⇒ 1331 = P × (110/100)3

⇒ P = 1331 × (100/110) × (100/110) × (100/110)

∴ P = Rs. 1000