Multiple choice

In a mutual fund, a sum amounts to Rs 2640 in 2 years and to Rs 3960 in 4 years at a certain rate per annum, when the interest is compounded yearly. Find the sum.

  1. 1250

  2. 2100

  3. 1550

  4. 1760

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

Let sum be P. Amount after 2 years: P(1+r)² = 2640. Amount after 4 years: P(1+r)⁴ = 3960. Dividing: (1+r)² = 3960/2640 = 1.5. So P = 2640/1.5 = 1760. Option D is correct.

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