The compound interest of second year on a sum at the rate of 10% p.a. is Rs. 880. Find the sum.
Answer & explanation
Correct answer: option 2
Rate = 10% = \(\frac{1}{10}\)
Let the principal = 102 = 100 ( if time is two years then we will take square)
CI for first year CI for Second year
10 11
⇓
×80
⇓
880 (Given)
Sum is = 100 × 80 = 8000