A certain sum amounts to Rs. 4205.55 at 15% p.a. in 
years (interest compounded annually). The sum is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 2 i.e. ₹3,000.
Compound interest formula is:
A = P( 1 + R/100)T
where, A = amount, P = principal amount, R = rate, T = time
Now, putting the values in the equation,
4205.55 = P (1 + 15/100)2.4
4205.55 = P(23/20)2.4
P = 4205.55/(23/20)2.4
P = ₹3,000