At a certain rate of interest compounded annually, a sum amounts to ₹10,890 in 2 years and to ₹11,979 in 3 years. The sum is: |
₹9,000 ₹8,000 ₹8,500 ₹9,500 |
₹9,000 |
Difference in amount after 2 and 3 years = 11979 - 10890 = 1089 Rate of Interest = \(\frac{1089}{10890}\) × 100% = 10% Now, To find out initial sum , Formula used in case of compound interest, Amount = P$(1 \;+\; \frac{R}{100})^t$ 10890 = P [ 1 + \(\frac{10}{100}\) ]² 10890 = P [ \(\frac{11}{10}\) ]² P = 10890 × \(\frac{10}{11}\) × \(\frac{10}{11}\) = 9000 So, Initial sum is Rs. 9000 |