Multiple choice

The compound interest earned by Suresh on a certain amount at the end of two years at the rate of 8 % p.a. was Rs. 1,414.40. What was the total amount that Suresh got back at the end of two years?

  1. Rs. 9,414.40

  2. Rs. 9,914.40

  3. Rs. 9,014.40

  4. Rs. 8,914.40

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CI = P((1+r)^n - 1). 1414.40 = P((1.08)^2 - 1) = P(1.1664 - 1) = P(0.1664). P = 1414.40 / 0.1664 = 8500. Total amount = 8500 + 1414.40 = 9914.40.

AI explanation

Using the formula for the effective rate of compound interest over two years, Rate = 8 + 8 + (8 * 8 / 100) = 16.64%. Let P be the principal, so (16.64 / 100) * P = 1414.40, which makes the principal Rs. 8,500. The total amount Suresh received is the sum of the principal and the interest, which is 8500 + 1414.40 = Rs. 9,914.40.

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