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19 vote

A sum amounts to Rs 7727.104 at the rate of 12% per annum compounded annually after three years. What is the value of principal (in Rs)?

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A sum amounts to Rs 7727.104 at the rate of 12% per annum compounded annually after three years. What is the value of principal (in Rs)?
1). 5000
2). 5200
3). 5350
4). 5500


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1 answers

22 vote
Answered by on | Votes 22 |

Let the principal be P

⇒ A = P(1 + r/100n)nt

⇒ 7727.104 = P(1 + 12/100)3

⇒ P = 7727.104/(1 + 12/100)3

⇒ P = 7727.104/(1.12)3

∴ P = Rs. 5500

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