2018 · Q33
A merchant commences with a certain capital and gains annually at the rate of 25%. At the end of 3 years he has Rs. 10,000. What is the original amount that the merchant invested?
Elementary MathematicsSimple and Compound Interest
- ARs. 5,120
- BRs. 5,210
- CRs. 5,350
- DRs. 5,500
Explanation
With 25% annual gain, P(1.25)³ = 10000. Since 1.25³ = 1.953125, P = 10000/1.953125 = Rs. 5120, option (A).