Question

A sum of money becomes Rs. 35,280 after 2 years and Rs. 37,044 after 3 years when lent on compound interest. Find the principal amount.

• A. Rs. 32,000
• B. Rs. 28,000
• C. Rs. 31,500
• D. Rs. 32,500
• E. None of these

Answer 1

The correct option is A Rs. 32,000

Divide both equations $[1+\frac{r}{100}]=\frac{37044}{35280}=\frac{21}{20}$
So $P{\left[\frac{21}{20}\right]}^2=35280$