Multiple choice

A certain sum amounts to Rs. 2,80,900 in 2 years at 6% per annum, interest compounded annually. The sum is:

  1. Rs. 2,00,000

  2. Rs. 2,50,000

  3. Rs. 5,50,000

  4. Rs. 3,50,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A = P(1 + r/100)^n. 280900 = P(1.06)^2 = P(1.1236). P = 280900 / 1.1236 = 250000.

AI explanation

Using the compound amount formula, the principal is calculated as the amount divided by the quantity 1 plus the rate divided by 100 raised to the number of years. Substituting the given values gives 280900 divided by 1.06 squared, which equals 280900 divided by 1.1236, resulting in a sum of Rs. 250000.

Keep practicing — related questions