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:
Answer & explanation
Correct answer: option 1
Rate of compound interest = 10%
= \(\frac{1 }{10}\)
Principal : Amount
For 1st year 10 : 11
For 2nd year 10 : 11
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100 : 121
ATQ,
Compound interest = ( 121 - 100 )R = 21R
21R = 1522.50
1R = 72.5
Now , Sum is = 100R = 100 × 72.5 = Rs. 7250