Multiple choice

A certain sum amounts to Rs 72900 in 2 years at 8% per annum compound interest Find the sum

  1. Rs 72000

  2. Rs 62500

  3. Rs 135000

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = P(1 + r/100)^n. 72900 = P(1 + 8/100)^2 = P(1.08)^2 = P(1.1664). P = 72900 / 1.1664 = 62500.

AI explanation

Using the present value formula P = A / (1 + r)^100, we divide the amount of 72900 by the compound factor for 8% over 2 years, which is (1.08)^2 or 1.1664. The principal P is 72900 / 1.1664, which equals 62500. The sum is Rs 62500.

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