Question

What sum will amount to Rs. $6,593.40$ in $2$ years C.I., if the rates are $10$ per cent and $11$ per cent for the successive years?

• A. $5000$
• B. $5600$
• C. $5400$
• D. $6000$

Answer 1

Answer: (C)

$5400$

$\Rightarrow$ Let rate of interest for 2 years will be $R_1=10\%$ and $R_2=11\%$.

$\Rightarrow$ $A=P\times (1+\frac{R_1}{100})(1+\frac{R_2}{100})$

$\Rightarrow$ $6593.40=P\times (1+\frac{10}{100})(1+\frac{11}{100})$

$\Rightarrow$ $6593.40=P\times \frac{11}{10}\times \frac{111}{100}$

$\Rightarrow$ $6593.40=P\times \frac{1221}{1000}$

$\Rightarrow$ $P=\frac{6593.40\times 1000}{1221}=Rs.5400$