The compound interest on a certain sum of money at 21% p.a. for 2 years is ₹11,138.40 (interest compounded yearly). The total amount received (in ₹) after 2 years is:
Answer & explanation
Correct answer: option 3
Rate = 12%
Effective rate of 2 years = 21 + 21 + \(\frac{21×21 }{100}\)
= 42 + 4.41
= 46.41%
ATQ,
46.41% = 11138.40
1% = \(\frac{11138.40 }{46.41}\) = 240
100% = 100 × 240 = 24000
We know ,
Amount = Principal + Interest
= 24000 + 11138.40
= 35138.40