Multiple choice

Seema invests an amount in a bank that offers an annual compound interest rate of 6%. After 3 years, her investment grows to Rs. 11,910.16. What was the initial amount she invested?

  1. Rs. 9,700

  2. Rs. 9,800

  3. Rs. 10,000

  4. Rs. 10,250

  5. Rs. 10,500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A = P(1 + r/100)^n. 11910.16 = P(1.06)^3. 1.06^3 = 1.191016. P = 11910.16 / 1.191016 = 10000.

AI explanation

Using the compound interest formula, the initial amount equals the final amount divided by the growth factor. The growth factor is 1.06 raised to the power of 3, which equals 1.191016. Dividing the final amount of Rs. 11,910.16 by 1.191016 gives the initial principal of Rs. 10,000.

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