Multiple choice

A sum of money is put at compound interest for 2 years at 20% p.a. It would fetch Rs. 1446 more, if the interest were payable half-yearly. Find the sum.

  1. Rs. 25000

  2. Rs. 36000

  3. Rs. 60000

  4. Rs. 72000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Annual compounding: A = P(1.2)^2 = 1.44P. Half-yearly: rate = 10%, periods = 4, A = P(1.1)^4 = 1.4641P. Difference = 0.0241P = 1446. Therefore P = 1446/0.0241 = 60,000. Option C is correct.

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