Question

The principal that amounts to Rs. $4913$ in $4\frac{1}{2}$ years at $6\%$ per annum compound interest, compounded annually, is

• A. $3179.81$
• B. $3579.81$
• C. $3779.81$
• D. $3979.81$

Answer 1

Answer: (C)

$3779.81$

We know the formula,
$A=P{(1+\frac{r}{100})}^t$
Given, $A=$ Rs. $4913$, $r=6\%$ and $t=$ $4\frac{1}{2}$ years
Therefore, $4913=P{(1+\frac{6}{100})}^{4.5}$
$\Rightarrow 4913=P\times {1.06}^{4.5}$
$\Rightarrow 4913=P\times 1.2998$
$\Rightarrow P=\frac{4913}{1.2998}$
$\Rightarrow P=$ Rs. $3779.81$