The total amount after 3 quarters would be Rs.13,310. If the rate of interest is 40% per annum and compounding is performed quarterly, determine the present value (in Rs.).
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 10000.
We know that the formula of compound interest is:-
= P × (1 + r/n)nt
⇒ 13310 = P × (1 + 40/400)3
⇒ 13310 = P × (1.1)3
⇒ 13310 = P × (1.331)
P = 10,000