A certain sum amounts to Rs.280900 in 2 years at 6% per annum, interest compounded annually. The sum is:
Answer & explanation
Correct answer: option 1
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
280900 = P ( 1 + \(\frac{6}{100}\) )²
280900 = P ( \(\frac{53}{50}\) )²
280900 × \(\frac{50}{53}\) × \(\frac{50}{53}\) = P
P = 2,50,000