Question

What sum of money will amount to Rs. $1188$ in three years at $9$% per annum compounded yearly?

• A. $817$
• B. $1017$
• C. $1,100$
• D. $917$

Answer 1

The correct option is D $917$

$\Rightarrow$ $A=$Rs.$1188R=9\%$ and $T=3$years.

$\Rightarrow$ $A=P\times (1+\frac{R}{100}{)}^T$

$\Rightarrow$ $1188=P\times (1+\frac{9}{100}{)}^3$

$\Rightarrow$ $1188=P\times (\frac{109}{100}{)}^3$

$\Rightarrow$ $P=\frac{1188}{(1.09{)}^3}=$Rs.$917$