Question

Choose the correct answer form the alternatives given.
A sum of money amounts to Rs. 4624 in 2 years and to Rs. 4913 in 3 years at compound interest. The sum is

• A. Rs. 4096
• B. Rs. 4260
• C. Rs. 4335
• D. Rs. 4360

Answer 1

The correct option is A Rs. 4096

Interest on $Rs.4624$ for $1$ year $=4913-4624=Rs.289$
We know that,
R = $\frac{CI\times 100}{P\times T}$
Rate = $\frac{289}{4624}$ $\times =6\frac{1}{4}$%
Let the principal amount be Rs. $x$.
$x{(1+\frac{25}{4\times 100})}^2=4624\Rightarrow x\times \frac{17}{16}\times \frac{17}{16}=4624$
$x=4624$ $\times \frac{17}{16}\times \frac{16}{17}=Rs.4096$