Question

What sum lent out at CI will amount to Rs. $968$ in $2$ years at $10$% p.a. interest?

• A. Rs.$800$
• B. Rs.$1,000$
• C. Rs.$600$
• D. Rs.$1,200$

Answer 1

The correct option is A Rs.$800$

$\Rightarrow$ We have, $A=Rs.968,T=2years$ and $R=10\%$

$\Rightarrow$ $A=P\times (1+\frac{R}{100}{)}^T$

$\Rightarrow$ $968=P\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ $968=P\times (\frac{11}{10}{)}^2$

$\Rightarrow$ $P=968\times \frac{100}{121}$

$\therefore$ $P=Rs.800$