Multiple choice

Anurag invested a sum of money on simple interest for 3.5 years at the rate of 18% per annum and the interest is calculated quarterly. If he received Rs. 118175 at the end of investment period then find the sum invested by Anurag.

  1. Rs. 70000

  2. Rs. 72000

  3. Rs. 72500

  4. Rs. 70500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For 3.5 years at 18% with quarterly compounding: amount = P(1 + 0.18/4)^14 = P(1.045)^14 ≈ P(1.777). Given amount = 118175, so P ≈ 118175/1.777 ≈ 66500. For simple interest: P = 118175/(1 + 0.18 × 3.5) ≈ 72732. The closest option that could work with reasonable interpretation is Rs. 72500.

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