Multiple choice

The sum which will amount to rupees 8,748 in 2 years at 8% per annum compound interest is:

  1. 6,000

  2. 6,500

  3. 7,000

  4. 7,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, 8748 = P(1 + 8/100)^2 = P(1.08)^2 = P(1.1664). Dividing 8748 by 1.1664 gives 7500.

AI explanation

Use the present value formula for compound interest: Sum = Amount / (1 + R/100)^T. Substituting the given values, Sum = 8748 / (1 + 8/100)^2 = 8748 / (108/100)^2 = 8748 / (27/25)^2 = 8748 / (729/625). This simplifies to 8748 * (625/729), which equals 12 * 625, resulting in a principal of Rs. 7,500.

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