Practicing Success
A sum of money amounts to ₹28,224 in 2 years and to ₹29,635.20 in 3 years when invested on compound interest, compounded annually. What is the sum of money? |
₹26,880 ₹26,095 ₹26,000 ₹25,600 |
₹25,600 |
Interest on Rs. 28224 = 29635.20 - 28224 = Rs. 1411.20 Rate of interest =\(\frac{1411.20}{28224}\) × 100 = 5% Formula used- Amount = P$(1 \;+\; \frac{R}{100})^t$ 28824 = P [ 1 + \(\frac{5}{100}\) ]² 28824 = P [ \(\frac{21}{20}\) ]² 28824 × \(\frac{20}{21}\)× \(\frac{20}{21}\) = P P = 25600 So, Initial sum is Rs. 25600
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