Multiple choice

Find the sum of money which will amount to Rs. 9261 in 3 years at the rate of 5% per annum, when the interest is compounded annually.

  1. Rs. 8500

  2. Rs. 8000

  3. Rs. 9000

  4. Rs. 9200
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, where A=9261, r=5, n=3. 9261 = P(1.05)^3. 1.05^3 = 1.157625. P = 9261 / 1.157625 = 8000.

AI explanation

Using the compound interest formula for present value, Principal = Amount / (1 + R/100)^T. Substituting the values gives Principal = 9261 / (1 + 5/100)^3, which simplifies to 9261 / (21/20)^3. Calculating 9261 x (8000 / 9261) yields the principal of Rs. 8000. The required sum is Rs. 8000.

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