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More Examples of Compound Interest

To Find Principal
            We are given n, A, and r
            We have to find P by the formula
                       
                  

Example 14:
            Find principal, when compound interest for 4 years at 6% is 525.

Solution:
            Let       Principal = P
                       
                        r = 6%
            C.I = 525

We know that
           
           
           
           
           
           

Example 15:
            Find principal of Rs.4635.50 due at the end of 3 years at 5% annually.

Solution:
            Let       Principal = P
                        A = 4635.50
                        r = 5%
                       

            Using
                  
                  

To Find Time
            When P, A, r are given
            We have to find time by the same formula.
           

Example 16:
            In how many years a sum of 600 would amount to 757.48 at 6% compounded annually.

Solution:
            Let       Principal = 600
                        A = 757.48
                       
                        r = 6%
            Using
                       
                       
                       
            Taking log both sides
                       
                       
                       
                       

To Find Rate
            When P, n, A are given

            We have to find r by the using same formula
                       

Example 17:
            Find the rate of interest compounded per annum for 3 years so that 4000 becomes 4635.50

Solution:
            Let       A = 4635.50
                        P = 4000
                       
                        r = ?
            Using
                       
                       
                       
                       
                       
                       


 

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