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Multiple choice

A sum of money amounts to Rs. 1352 in 2 years at 4% per annum of compound interest. The sum is -

  1. Rs. 1200

  2. Rs. 1250

  3. Rs. 1280

  4. Rs. 1296

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = Principal * (1 + r/100)^t. 1352 = P * (1.04)^2. 1.04^2 = 1.0816. P = 1352 / 1.0816 ≈ 1250. The principal sum is Rs. 1250.

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