A sum amounts to Rs 7727.104 at the rate of 12% per annum compounded annually after three years. What is the value of principal (in Rs)?
Let principal value = Rs. $$P$$
Rate of interest = 12% and time period = 3 years
=> Amount under compound interest = $$P(1+\frac{R}{100})^T$$
=> $$P(1+\frac{12}{100})^3=7727.104$$
=> $$P(\frac{28}{25})^3=7727.104$$
=> $$P=7727.104\times\frac{15625}{21952}$$
=> $$P=15625\times0.352=Rs.$$ $$5500$$
=> Ans - (D)
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