The compound interest of second year on a sum at the rate of 20 % p.a. is Rs. 840. Find the sum.
Answer & explanation
Correct answer: option 3
Rate = 20% = \(\frac{1}{5}\)
Let the principal = 52 = 25 (if time is two years then we will take square)
CI for first year CI for Second year
5 6
⇓
×140
⇓
840 (Given)
Sum is = 25 × 140 = 3500