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    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
    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]
    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.

    Answered by Anurag Mishra on 4th August 2015..