Mathematics for FinancePYQ Nov 19Question 1293 of 512
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If a person invests 3,000\displaystyle 3,000 in a three years' investment that pays 12%\displaystyle 12\% per annum. Calculate the future value of the investment.

Options

A4214.78\displaystyle 4214.78
B4124.78\displaystyle 4124.78
C4324.48\displaystyle 4324.48
D4236.48\displaystyle 4236.48
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Correct Answer

✅ Option a — 4214.78\displaystyle 4214.78

All Options:

  • A4214.78\displaystyle 4214.78
  • B4124.78\displaystyle 4124.78
  • C4324.48\displaystyle 4324.48
  • D4236.48\displaystyle 4236.48

Detailed Solution & Explanation

**Derivation of Future Value** Given: - Principal (P\displaystyle P) = Rs. 3,000\displaystyle \text{Rs. }3,000 - Rate of Interest (r\displaystyle r) = 12%\displaystyle 12\% per annum - Time (t\displaystyle t) = 3\displaystyle 3 years **Step 1: Calculate the future value (A\displaystyle A)** A=P(1+r)tA = P(1 + r)^t A=3000(1+0.12)3A = 3000(1 + 0.12)^3 A=3000(1.12)3A = 3000(1.12)^3 A=3000×1.404928=Rs. 4,214.784≈Rs. 4,214.78A = 3000 \times 1.404928 = \text{Rs. }4,214.784 \approx \text{Rs. }4,214.78 Hence, **Option A** is the correct answer.

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