Multiple choice

The sum for 2 years gives a compound interest of Rs. 3225 at 15% rate. Then, sum is

  1. 10,000

  2. 20,000

  3. 15,000

  4. 32,250
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A Correct answer
Explanation

For 2 years at 15%, CI = P * ((1 + 0.15)^2 - 1) = P * (1.3225 - 1) = 0.3225P. 0.3225P = 3225, so P = 10000.

AI explanation

Using the two-year compound interest formula CI = P(R/100)^2 + 2P(R/100), we substitute the interest of Rs. 3225 and the rate of 15%. This gives 3225 = P(0.15 squared) + 2P(0.15), which simplifies to 3225 = 0.0225P + 0.3P. Solving for the principal gives P = 3225 divided by 0.3225, resulting in a sum of Rs. 10,000.

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