Multiple choice

The compound interest for 2 years @10% per annum is Rs.126. Find the value of the sum.

  1. Rs.400

  2. Rs.600

  3. Rs.100

  4. Rs.800
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CI for 2 years at 10% is P[(1+10/100)²-1] = P[(1.1)²-1] = P[1.21-1] = 0.21P. Given CI=126, so 0.21P=126, P=126/0.21=600. Verification: Year 1 interest=60, Year 2 interest=66, total=126. Rs.400 would give CI=84, Rs.100 gives CI=21, Rs.800 gives CI=168.

Keep practicing — related questions