Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The compound interest on a certain sum invested for 2 years at 10% per annum is ₹1,522.50, the interest being compounded yearly. The sum is:

Options:

₹7,250

₹7,200

₹7,500

₹7,000

Correct Answer:

₹7,250

Explanation:

Rate of compound interest = 10%

= \(\frac{1 }{10}\)
                    

                               Principal   :   Amount

For 1st year                 10        :       11

For 2nd year                 10        :     11

---------------------------------------------------------

                                  100        :      121

ATQ,

Compound interest = ( 121 - 100 )R = 21R

21R = 1522.50 

1R = 72.5

Now , Sum is = 100R = 100 × 72.5 = Rs. 7250