A certain sum invested at 4% per annum compound interest compounded half yearly, amounts to Rs. 7803 at the end of one year. The sum is:
Answer & explanation
Correct answer: option 3
Rate of interest half yearly = \(\frac{4}{2}\) = 2% = \(\frac{1}{50}\)
Total Amount = 2500 + 101 = 2601
ATQ,
⇒ 2601R = 7803
⇒ 1R = 3
⇒ Therefore, Principal = 2500 × 3 = Rs.7500