Multiple choice

A sum of money becomes Rs. 3600 in 2 years and 5184 in 4 years at certain rate of compound interest per annum. What is the approximate sum of money?

  1. 3000 Rs

  2. 2750 Rs

  3. 2250 Rs

  4. 2600 Rs

  5. 2500 Rs
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, we have P × (1 + r/100)^2 = 3600 and P × (1 + r/100)^4 = 5184. Dividing gives (1 + r/100)^2 = 5184/3600 = 1.44, so 1 + r/100 = 1.2, meaning r = 20%. Then P = 3600/1.44 = 2500. Checking: 2500 × 1.2^2 = 3600 and 2500 × 1.2^4 = 5184.

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