233k views
3 votes
Find the principal if compound interest is rupees 331, rate is 10% per annum compounded annually and time is 3 years

User Kottan
by
7.1k points

1 Answer

1 vote

Explanation:

FV = PV (1+i)^n is the compounding formula to show the final amount in the account after three years with i = .10 n = 3

the interest would be this amount - the original PV

331 = PV ( 1 +.1)^3 - PV

331 = PV ((1+.1)^3 -1)

shows PV = 1000 Rupees

User Maxcountryman
by
7.3k points