Multiple choice

A sum of money lent at compound interest for 2 years at 20% per annum would fetch Rs.482 more, if the interest was payable half yearly than if it was payable annually . The sum is

  1. Rs. 2000

  2. Rs. 2500

  3. Rs. 20000

  4. Rs. 25000

  5. Rs. 30000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Half-yearly: (1+0.10)⁴ - 1 = 0.4641. Annually: (1+0.20)² - 1 = 0.44. Difference = 0.0241. So 0.0241×P = 482, giving P = 482/0.0241 ≈ 20000. The sum is Rs. 20000.

Keep practicing — related questions