Question

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

• A. ₹ 3200
• B. ₹ 3000
• C. ₹ 2900
• D. ₹ 3500

Answer 1

The correct option is B

₹ 3000

Let the sum of money be P
Given A = ₹ 3630 n = 2 years and r = 10 %

A = P$(1+\frac{r}{100}{)}^n$
3630 = P$(1+\frac{10}{100}{)}^2$
3630 = P$(\frac{110}{100}{)}^2$
= P$(\frac{11}{10}{)}^2$
= P $(\frac{121}{100}$)
P = $\frac{3630\times 100}{121}$
P = ₹ 3000