Multiple choice

Find the sum which amount to Rs. $ 1352$ in $2$ years at $4\%$ compound interest.

  1. Rs. $1250$
  2. Rs. $1220$
  3. Rs. $1245$
  4. Rs. $1350$
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A Correct answer
Explanation

Amount = P * (1 + r/100)^n. 1352 = P * (1 + 4/100)^2 = P * (1.04)^2 = P * 1.0816. P = 1352 / 1.0816 = 1250.

AI explanation

Using the compound amount formula, A = P(1 + R/100)^T, we have 1352 = P(1 + 4/100)^2. This simplifies to 1352 = P(1.04)^2, or 1352 = P(1.0816). Therefore, the principal sum is 1352 / 1.0816, which equals Rs. 1250.

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