Multiple choice

Mr. Johnson invested a substantial amount of money into a sophisticated long-term investment scheme featuring annual compounding. Over a span of 4 years, the investment grew to Rs. 5,00,000, while extending to 12 years saw it mature to Rs. 6,20,000. Determine the compound interest earned over a period of 24 years as a percentage of the initial investment made at the beginning of the first year.

  1. 40.18

  2. 90.66

  3. 96.77

  4. 103.66

  5. 123.66
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The problem describes compound interest. Given A(4) = 500,000 and A(12) = 620,000, we can find the growth factor. However, the question asks for the interest after 24 years as a percentage of the initial investment, which requires calculating the initial principal P. The provided options seem to follow a specific calculation path resulting in 90.66%.

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