A sum of money becomes ₹13,380 after 3

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

A sum of money becomes ₹13,380 after 3 years and ₹20,070 after 6 years on compound interest.

Options:

8920

9920

7920

6920

Correct Answer:

8920

Explanation:

We have,

The money becomes Rs. 13380 after 3 years and Rs. 20070 after 6 years

= 20070/13380 = 1.5

That means the money becomes 1.5 times after (6 – 3) = 3 more years.

∴ Principal = 13380/1.5 = Rs. 8920