Question 85

The amount received at 10% per annum Compound interest after 3 yrs is Rs 5324. What was the principal (in Rs)?

Solution

Total time = $$P \times (1+\frac{R}{100})^{n}$$

$$\Rightarrow 5324 = P \times (1+\frac{10}{100})^{3}$$

$$\Rightarrow 5324 = P \times (1+\frac{1}{10})^{3}$$

$$\Rightarrow 5324 = P \times (\frac{11}{10})^{3}$$

$$\Rightarrow 5324 = P \times \frac{11}{10} \times \frac{11}{10} \times \frac{11}{10}$$

$$\Rightarrow P = 4000$$

So the answer is option C.

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