Multiple choice

A sum when invested at compound interest 6% per annum gives to Rs. 618 as interest after 2 years. Find the sum?

  1. Rs. 6000

  2. Rs. 8000

  3. Rs. 5000

  4. Rs. 6500

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

Use compound interest formula: CI = P[(1+r/100)^n - 1]. Here CI = 618, r = 6%, n = 2. So 618 = P[(1.06)^2 - 1] = P[1.1236 - 1] = P(0.1236). Therefore P = 618÷0.1236 = 5000. Check: 5000×0.1236 = 618 ✓

Keep practicing — related questions