A sum of money amounts to ₹14,112 at the rate of 20% per annum compounded annually for 3 years. Find the sum of money.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹8,166.67.
Amount A = ₹14,112
Rate = r = 20% per annum compounded annually
Time = n = 3 years
Principal = P = ?
A = P(1 + r/100)n
⇒ 14112 = P(1 + 20/100)3
⇒ 14112 = 216P/125
⇒ P = 49000/6 = Rs 8,166.67