What sum of money will amount to Rs. $9{,}261$ in $3$ years at $5\%$ p.a. compounded annually?

What sum of money will amount to Rs. $9{,}261$ in $3$ years at $5\%$ p.a. compounded annually?
  1. Rs. $7{,}500$
  2. Rs. $8{,}000$
  3. Rs. $8{,}500$
  4. Rs. $9{,}000$

Solution

$P = \dfrac{A}{(1 + R/100)^{n}} = \dfrac{9261}{(1.05)^{3}} = \dfrac{9261}{1.157625} = 8000$.

Asked in: IMO

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