Question

Compound interest for a certain sum of money for two years is 10% per annum is ₹ 315. Find the sum of money.

• A. ₹ 1200
• B. ₹ 1500
• C. ₹ 1185
• D. ₹ 1815

Answer 1

The correct option is B

₹ 1500

Let the sum of the money be P.
Given that I = ₹ 315 ; r = 10% and n = 2 years
$A=P(1+\frac{r}{100}{)}^n$
We know, I = A - P
Hence $I=P(1+\frac{r}{100}{)}^2-P$
315 = P$(1+\frac{10}{100}{)}^2$ - P
315 = $\frac{121P}{100}$ - P
315 = $\frac{21P}{100}$
$P=\frac{315\times 100}{21}$
$\therefore P=₹1500$