Multiple choice

On what amount will the compound interest for 3 years at 10% per annum be Rs. 662?

  1. Rs. 2100

  2. Rs. 1900

  3. Rs. 2000

  4. Rs. 2200
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compound Interest formula: A = P(1 + r/100)^n. CI = P((1 + 0.1)^3 - 1) = 662. P(1.331 - 1) = 662. P(0.331) = 662. P = 662 / 0.331 = 2000.

AI explanation

Using the compound interest formula, Amount = Principal x (1 + Rate/100)^n, we have Amount = Principal x (1.1)^3, which equals Principal x 1.331. Since the compound interest is 662, the amount is Principal + 662, so we set Principal x 1.331 = Principal + 662. This gives 0.331 x Principal = 662, and dividing 662 by 0.331 shows the principal amount is Rs. 2000.

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