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Find the Principal If the Interest Compounded Annually at the Rate of 10% for Two Years is Rs 210.

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Question

Find the principal if the interest compounded annually at the rate of 10% for two years is Rs 210.

Sum
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Solution

Let the sum be Rs x.
We know that: 
CI = A - P
\[ = P \left( 1 + \frac{R}{100} \right)^n - P\]
\[ = P\left[ \left( 1 + \frac{R}{100} \right)^n - 1 \right]\]
\[210 = x\left[ \left( 1 + \frac{10}{100} \right)^2 - 1 \right]\]
\[210 = x\left[ \left( 1 . 10 \right)^2 - 1 \right]\]
\[x = \frac{210}{0 . 21}\]
\[ = 1, 000\]
Thus, the required sum is Rs 1, 000.

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Chapter 14: Compound Interest - Exercise 14.3 [Page 20]

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R.D. Sharma Mathematics [English] Class 8
Chapter 14 Compound Interest
Exercise 14.3 | Q 2 | Page 20

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