A sum of money becomes Rs.17820 after 4 years and Rs.23760 after 6 years on compound interest when the interest is compounded annually. What is the half of the sum (in nearest a Rs.).
Answer & explanation
Correct answer: option 3
4 years : 6 years
Sum : 17820 : 23760
Sum : 3 : 4
So initial amount = 17820 × \(\frac{3}{4}\) × \(\frac{3}{4}\)
Half of the initial amount: = 17820 × \(\frac{3}{4}\) × \(\frac{3}{4}\) × \(\frac{1}{2}\)
= 5011.8 = ∼ 5012