Question

    A sum of money was invested at 10% p.a. compound interest (compounded annually), and it amounted to Rs. 6050 at the end of 2 years. Find the original sum.

    A Rs.2500 Correct Answer Incorrect Answer
    B Rs.5000 Correct Answer Incorrect Answer
    C Rs.3500 Correct Answer Incorrect Answer
    D Rs.4250 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the principal amount be Rs. P. So, 1.10 × 1.10 × P = 6050 P = [6050/(1.10 × 1.10)] = 5000. Hence, the original sum is Rs. 5000.

    Practice Next

    Relevant for Exams: