Question

The amount of a certain sum at compound Interest for 2 yr at 5% is Rs 4410/- The sum is -

1. Rs 4000/-
2. Rs 4200/-
3. Rs 3900/-
4. Rs 3800/-

Answer 1

Correct Answer - Option 1 : Rs 4000/-

Given:

The amount of a certain sum at compound Interest for 2 yr at 5% is Rs 4410

Formula used:

Amount = Principal(1 + R/100)^T

R = rate, T = time

Calculation:

According to the question,

Amount = Principal(1 + R/100)^T

⇒ 4410 = Principal(1 + 5/100)²

⇒ Principal = 4410 × 10000/(105 × 105)

⇒ Principal = Rs. 4000

∴ The sum is Rs. 4000.