Find the Present Value. If

Find the  present  value  of Rs. 4913  due  3 years. Hence at 25/4% per annum compound interest?

  1. 4206
  2. 4345
  3. 4096
  4. None of these
Desire Adnan Default Asked on 3rd August 2015 in Maths.
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1 Answer(s)

Answer: (3) 4096
Explanation:-
Let the principal be P

Given- 
Amount = Rs.4913, Rate = 25/4 %  , Time = 3 years.

Formula-
Compound Interest = P [(1 + R/100)t – 1]
Where, P = principal, R = rate, t = time.

Then,
4913 = P (1 + 25/4 x 100)3
4913 = P (1 + 1/16)3
4913 = P (17/16)3
P = 4913 x 16 x 16 x 16 /17 x 17 x 17
P = 16 x 16 x 16
P = 4096
Then, the present value is Rs.4096.
Hence, the answer is (3) 4096.

Anurag Mishra Professor Answered on 4th August 2015.
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