Multiple choice

The compound interest accrued on an amount at the end of two years at the rate of interest is 24% per annum is Rs.10080, what is the sum?

  1. Rs.17450

  2. Rs.18750

  3. Rs.17750

  4. Rs.19450

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

Using compound interest formula: A = P(1 + r/100)^t. CI for 2 years = P[(1 + 24/100)^2 - 1] = P[(1.24)^2 - 1] = P[1.5376 - 1] = 0.5376P = 10080. Therefore P = 10080/0.5376 = Rs. 18750. Option B is correct.

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