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On a certain sum of money, compound interest earned at the end of three years = Rs. 1456. Compound interest at the end of two years is Rs. 880. Compute the principal invested.
Rs. 2,400
Rs. 2,800
Rs. 2,000
Rs. 1,600
Let principal = P, rate of interest = r % CI earned at the end of three years = P(1 + r)3 - P = 1456 => P(3r2 + 3r + r3) = 1456 CI earned at the end of two years = P(1 + r)2 - P = 880 => P(r2 + 2r) = 880 Rs. 2,000 is the principal amount.
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