Multiple choice

The compound interest on a certain sum of money for one year 146 days at 14.28% per annum is Rs. 408. Then find the principal?

  1. 2020

  2. 1960

  3. 1720

  4. 1620
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

1 year 146 days = 1 + 146/365 = 1.4 years. CI = P(1 + 14.28/100)^1.4 - P = 408. 14.28% ≈ 1/7, so (1 + 1/7)^1.4 = (8/7)^1.4 ≈ 1.208. P(1.208 - 1) = 408, so P = 408/0.208 ≈ 1960. Verification: 14.28% of 1960 for 1.4 years ≈ 1960 × 0.1428 × 1.4 ≈ 392 ≈ 408.

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