The compound interest on a sum for 3 years at 10% per annum, compounded annually, is ₹4,965. What is the sum?

Explanation

1. 01

   CI = $P[(1.1)^3 - 1] = P(1.331 - 1) = 0.331P$.

2. 02

   $0.331P = 4965$, so $P = \frac{4965}{0.331} = 15000$.

3. 03

   The sum is ₹15,000.