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Multiple choice

A person desires to create a fund to be invested at 10% per annum compound interest to provide for a prize of Rs. 300 every year. What should be the amount of the fund?

  1. Rs. 2000

  2. Rs. 2500

  3. Rs. 3000

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is a perpetuity problem. The fund amount P = Annual Payment / Interest Rate = 300 / 0.10 = 3000.

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  • Simple and Compound Interest (3394 questions)
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