Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The compound interest on a certain sum at 15% p.a. compounded yearly for $2\frac{1}{3}$ years is ₹9327. The sum is:

Options:

₹24000

₹25000

₹20000

₹27000

Correct Answer:

₹24000

Explanation:

For 1/3rd year ,

Compound interest = \(\frac{15}{3}\)% = 5%

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

9327 = P [ 1 + \(\frac{15}{100}\) ]²  × [ 1 + \(\frac{5}{100}\) ] - P

9327 = P [ \(\frac{23}{20}\) × \(\frac{23}{20}\) × \(\frac{21}{20}\) - 1 ]

9327 = P[ \(\frac{11109}{8000}\)  - 1 ]

= P [ \(\frac{3109}{8000}\) ]

P = 24000