Question

On what sum will the compound interest for 3 years at 5% per annum amount to Rs. 1,261?

• A. Rs. 8,500
• B. Rs. 9,500
• C. Rs. 9,000
• D. Rs. 8,000

Answer 1

The correct option is D Rs. 8,000

$CI=1,261,r=5$%, $T=3$
$CI=P[{(1+\frac{R}{100})}^N-1]$
$1,261=P[{(1+\frac{5}{100})}^3-1]=P(\frac{21}{20}\times \frac{21}{20}\times \frac{21}{20}-1)$
$1,261=P(\frac{9,261}{8,000}-1)$
$P=1,261\times \frac{8,000}{1,261}=Rs8,000$