Multiple choice

A sum of Rs 5000 amounts to Rs 7200 in 8 years at a certain rate percent per annum interest compounded yearly. What will be the compound interest on a sum of Rs 6550 in 4 years at the same rate of interest?

  1. Rs 1290

  2. Rs 1285

  3. Rs 1415

  4. Rs 1310
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For CI: A = P(1 + r/100)^n. Given 7200 = 5000(1 + r/100)^8, so (1 + r/100)^8 = 7200/5000 = 1.44. Then (1 + r/100)^4 = √1.44 = 1.2. For P = 6550, n = 4: Amount = 6550 × 1.2 = Rs 7860. CI = 7860 - 6550 = Rs 1310.

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