Question

The sum that amounts to Rs.4913 in 3 years at (25/4)% per annum compounded annually, is 

A. Rs. 3096 

B. Rs. 4076 

C. Rs. 4085 

D. Rs. 4096

Answer 1

Amount, A = Rs.4913 

Interest rate, R = (25/4)% per annum 

Time = 3 years 

Amount (A) = P (1 + R/100)ⁿ 

⇒ 4913 = P (1 + (25/4)/100)³ 

⇒ 4913 = P (1 + 1/16)³ 

⇒ 4913 = P (17/16)³ 

⇒ 4913 = P × 4913/4096 

⇒ P = 4913 × 4096/4913 

⇒ P = 4096 

∴ Sum = Rs.4096