Multiple choice

A sum of money invested at 8% per annum for simple interest amounts to Rs 12122 in 2 years. What will it amounts to in 2 year 8 months at 9% rate of interest?

  1. $14050$
  2. $12958$
  3. $13256$
  4. $12220$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A = P(1 + RT/100). 12122 = P(1 + 0.08 * 2) = P(1.16). P = 12122 / 1.16 = 10450. For 2 years 8 months (8/3 years) at 9%: A = 10450(1 + 0.09 * 8/3) = 10450(1 + 0.24) = 10450 * 1.24 = 12958.

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