The compound interest on a certain sum of money in one year is 720 and on the second year is 780. Find sum.
Answer & explanation
Correct answer: option 3
R = \(\frac{60}{720}\) × 100 = \(\frac{25}{3}\)%
⇒ Principal × \(\frac{25}{3}\)% = 720
⇒ Principal × 1% = \(\frac{720\;×\;3}{25}\)
⇒ Principal = \(\frac{720\;×\;3}{25}\) × 100 = 8640