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

- 4206
- 4345
- 4096
- None of these

Asked by Desire Adnan on 3rd August 2015 in Maths.

1 Answers

Professor

**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]**

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.

Answered by Anurag Mishra on 4th August 2015..