Question

The principle that amounts to Rs. $4913$ in $3$ years at $6\frac{1}{4}$% per anmum compound interest compounded annually is

• A. Rs. $4096$
• B. Rs. $4085$
• C. Rs. $4076$
• D. Rs. $3096$

Answer 1

Answer: (A)

Rs. $4096$

Given, $A=$ Rs. $4913,n=3,r=6\frac{1}{4}\%=\frac{25}{4}\%,P=?$
$\therefore 4913=P{(1+\frac{25}{400})}^3$

$\Rightarrow 4913=P{(1+\frac{1}{16})}^3$
$\Rightarrow 4913=P{\left(\frac{17}{16}\right)}^3$

$\Rightarrow 4913=P\times \frac{4913}{4096}$

$\Rightarrow P=$ Rs. $4096$