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?

1 answer

let the amount be x

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

x = 10000