Question

What sum of money will amount to Rs. $63,888$ in three years at $10$% per annum compounded yearly?

• A. $50,000$
• B. $48,000$
• C. $46,000$
• D. $40,000$

Answer 1

The correct option is B $48,000$

$A=P(1+\frac{r}{100}{)}^n$

$⟹63888=P(1+\frac{10}{100}{)}^3⟹P=48,000$

Hence sum$=Rs.48,000$.