Question

# Compound interest for a certain sum of money for two years at 10 % per annum is ₹315. Find the initial amount. ₹ 1500₹ 1000₹ 1500₹ 1200

Solution

## The correct option is C ₹ 1500Given: I = ₹315 ; r = 10 % and n = 2 years Let the Sum of the money be P   A =  P(1+r100)2 I = A - P  Hence I=P(1+r100)2−P315=P(1+r100)2−P315=P(1+10100)2−P315=P(1110)2−P315=121P100−P315=P(121100−1)315=21P100            P=315×10021=105×1007=₹1500 Therefore, the initial amount = ₹ 1500

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