Multiple choice

A sum of Rs 12,000 amounts to Rs 20,736 in 3 years at a certain rate percent per annum, interest compounded annually. What will the amount of the same sum be in 2 years at the same rate on compound interest?

  1. Rs15,640

  2. Rs17,820

  3. Rs17,280

  4. Rs14,520
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P(1 + r/100)^t. Given 20736 = 12000(1 + r/100)^3. Therefore (1 + r/100)^3 = 20736/12000 = 1.728. So 1 + r/100 = ∛1.728 = 1.2, giving r = 20%. For 2 years: Amount = 12000(1.2)^2 = 12000 × 1.44 = ₹17,280.

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