Multiple choice

The C.I. after 3 year on certain sum Rs. 136.5 more than the C.I. of Ist year if rate of compound interest is 16 2 3 % then find the sum of money ?

  1. 356

  2. 324

  3. 376

  4. 249

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

Rate = 16 2/3% = 1/6. CI for 3 years on P: P[(1 + 1/6)³ - 1] = P(7/216) = 7P/216 ≈ 0.0324P. CI for 1st year: P/6 ≈ 0.1667P. Difference = 7P/216 - 36P/216 = -29P/216 = 136.5. Solving: P = 324. Option B is correct. Option D (249) is close but incorrect.

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