Multiple choice

Find the sum of money which will amount $Rs 27783$ in $3$ years at $5%$ per annum, the interest compouded annually.

  1. Rs.$24400$
  2. Rs.$44000$
  3. Rs.$24000$
  4. Rs.$14000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A = P(1 + r/100)^n. 27783 = P(1.05)^3 = P(1.157625). P = 27783 / 1.157625 = 24000.

AI explanation

Using the present value formula for compound interest, the principal is calculated as A / (1 + r/100)^n. Substituting the given values gives 27783 / (1 + 5/100)^3, which equals 27783 / (1.05)^3. This results in 27783 / 1.157625, which gives a principal of Rs. 24000.

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