A sum of money becomes Rs.11880 after 4 years and Rs.17820 after 6 years on compound interest, the interest is compounded annually. What is the half of the sum (in Rs.).
Answer & explanation
Correct answer: option 4
Sum after 4 years after 6 years
11880 : 17820
Amount in ratio, 2 : 3 ( for 2 years)
So initial amount = 11880×\(\frac{2}{3}\)× \(\frac{2}{3}\)
Half of initial amount = 11880× \(\frac{2}{3}\)× \(\frac{2}{3}\)× \(\frac{1}{2}\) = 2640