Question

Tick the correct answer in each of the following:

The sum that amounts to Rs 4913 in 3 years at $6\frac{1}{4}\%$ per annum compounded annually, is

(a) Rs 3096 (b) Rs 4076 (c) Rs 4085 (d) Rs 4096

Answer 1

$\text{Amount = Rs. 4913}\text{Rate (R) =}6\frac{1}{4}=\frac{25}{4}\%\text{Period (n) = 3 years}\therefore P=A÷{(1+\frac{R}{100})}^n=4913÷{\left(1\frac{25}{4\times 100}\right)}^3=Rs.4913÷{(1+\frac{1}{16})}^3=4913÷{\left(\frac{17}{16}\right)}^3=Rs.4913\times \frac{16}{17}\times \frac{16}{17}\times \frac{16}{17}=Rs.4096\therefore Sum=Rs.4096\left(d\right)$