Multiple choice

What is the sum (in Rs) of money which will become Rs 29160 at the rate of 8% per annum at the compound interest in two years?

  1. 25000

  2. 26000

  3. 27000

  4. 28000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, where A = 29160, r = 8%, and n = 2 years. We have 29160 = P(1 + 8/100)² = P(1.08)² = P × 1.1664. Therefore, P = 29160/1.1664 = 25000. The principal sum is Rs 25000.

Keep practicing — related questions