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
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