Question

What sum of money will amount to ₹3630 in 2 years at 10 % per annum compound interest?

• A. ₹3200
• B. ₹3500
• C. ₹3000
• D. ₹2500

Answer 1

The correct option is C

₹3000

$\text{Let the sum invested be P.}$

$\text{We know that,}A=P(1+\frac{r}{100}{)}^n$

$\text{Given:}A=₹3630,r=10\%,n=2\text{years}$

$3630=P\times (1+\frac{10}{100}{)}^{2}3630=P\times (\frac{110\times 110}{100\times 100})3630=P(\frac{121}{100})$

$P=\left(\frac{3630\times 100}{121}\right)$

$=₹3000$