Multiple choice

The amount received at 10% per annum compound interest after 3 years is Rs. 10,648. What was the principal (in Rs.)?

  1. 8000

  2. 9000

  3. 8500

  4. 7500
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A Correct answer
Explanation

A = P(1 + r/100)^n. 10648 = P(1.1)^3 = P(1.331). P = 10648 / 1.331 = 8000.

AI explanation

Using the compound interest formula, Amount = Principal * (1 + Rate/100)^Time. Plugging in the known values gives Rs. 10,648 = Principal * (1 + 10/100)^3. This simplifies to Rs. 10,648 = Principal * (11/10)^3, which equals Principal * (1331/1000). Dividing Rs. 10,648 by 1.331 yields a principal of Rs. 8000.

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