MATHS

A SUM OF MONEY IS KEPT IN A BANK AT 8% INTEREST COMPOUNDED ANNUALLY.HAD THE INTEREST BEEN AT 10% COMPOUNDED SEMI ANNUALLY THE AMOUNT AFTER 1 YEAR WOULD HAVE BEEN 225 MORE.WHAT WAS THE PRINCIPAL AMOUNT KEPT IN THE BANK?

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  1. let the amount be x

    x(1.05)^2 - x(1.08) = 225
    x(1.05^2 - 1.08) = 225

    x = 10000

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