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Mathematics

Find the sum invested at 10% compounded annually, on which the interest for the third year, exceeds the interest of the first year by ₹ 252.

Compound Interest

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Answer

Let sum of money be ₹ x.

For first year :

P = ₹ x

R = 10%

T = 1 year

I = P×R×T100=x×10×1100=x10\dfrac{P \times R \times T}{100} = \dfrac{x \times 10 \times 1}{100} = \dfrac{x}{10}

Amount = P + I = x+x10=11x10x + \dfrac{x}{10} = \dfrac{11x}{10}

For second year :

P = ₹ 11x10\dfrac{11x}{10}

R = 10%

T = 1 year

I = P×R×T100=11x10×10×1100=11x100\dfrac{P \times R \times T}{100} = \dfrac{\dfrac{11x}{10} \times 10 \times 1}{100} = \dfrac{11x}{100}

Amount = P + I = 11x10+11x100=110x+11x100=121x100\dfrac{11x}{10} + \dfrac{11x}{100} = \dfrac{110x + 11x}{100} = \dfrac{121x}{100}.

For third year :

P = ₹ 121x100\dfrac{121x}{100}

R = 10%

T = 1 year

I = P×R×T100=121x100×10×1100=121x1000\dfrac{P \times R \times T}{100} = \dfrac{\dfrac{121x}{100} \times 10 \times 1}{100} = \dfrac{121x}{1000}.

Given,

Interest for the third year exceeds the interest of the first year by ₹ 252.

121x1000x10=252121x100x1000=25221x1000=252x=252×100021=12000.\therefore \dfrac{121x}{1000} - \dfrac{x}{10} = 252 \\[1em] \Rightarrow \dfrac{121x - 100x}{1000} = 252 \\[1em] \Rightarrow \dfrac{21x}{1000} = 252 \\[1em] \Rightarrow x = \dfrac{252 \times 1000}{21} = 12000.

Hence, sum = ₹ 12000.

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