Multiple choice

A invested an amount of x rupees in a bank for 2 years which gave 5% interest in year 1 and 6% interest in year 2. The amount received after 2 years was Rs. 24,486. What is the value of x?

  1. 23,000

  2. 22,500

  3. 22,000

  4. 21,500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The amount after 2 years is x * (1 + 0.05) * (1 + 0.06) = 24,486. This is x * 1.05 * 1.06 = x * 1.113 = 24,486. Dividing 24,486 by 1.113 gives 22,000.

AI explanation

Using the concept of successive percentage increases for the principal x, the total amount multiplier is 1.05 * 1.06 = 1.113. Therefore, x * 1.113 = 24486, which means x = 24486 / 1.113. Dividing 24486 by 1.113 gives the value of x as 22000. The value of x is 22000.

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