Multiple choice

What sum of money will amount to Rs. 31360 in 2 years at 12% per annum compound interest?

  1. Rs. 30,000

  2. Rs. 25,000

  3. Rs. 28,000

  4. Rs. 27,500

  5. Rs. 26,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = P(1 + r/100)^n. 31360 = P(1 + 12/100)^2 = P(1.12)^2 = P(1.2544). P = 31360 / 1.2544 = 25000.

AI explanation

Using the compound interest formula, Principal = Amount / (1 + R/100)^n. Substituting the given values gives Principal = 31360 / (1 + 12/100)^2, which is 31360 / 1.12^2. Calculating 1.12^2 gives 1.2544, so Principal = 31360 / 1.2544 = 25000. The result is Rs. 25,000.

Keep practicing — related questions