A sum invested at compound interest (compounded annual) amounts to ₹750 at the end of first year and ₹900 at the end of second year. What is the sum? |
₹700 ₹625 ₹600 ₹650 |
₹625 |
Difference in compound interest of 1st and 2nd year = 900 - 750 = Rs. 150 Rate of interest = \(\frac{150}{750}\) × 100% = 20% Now, Amount = P$(1 \;+\; \frac{R}{100})^t$ 750 = P [ 1 + \(\frac{20}{100}\) ] 750 = P [ \(\frac{6}{5}\) ] P = Rs. 625 |