A certain sum becomes ₹ 650 at the end of one year and ₹ 676 at the end of second year. The compound interest sum is:
1. 560
2. 625
3. 600
4. 540
1. 560
2. 625
3. 600
4. 540
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Correct Answer – Option 2 : 625
Given:
Amount at the end of first year = ₹ 650
Amount at the end of second year = ₹ 676
Formula Used:
Amount = Pricipal(1 + Rate/100)Time
Calculation:
(Amount at the end of second year)/(Amount at the end of first year) = {principle × (1 + Rate/100)2}/{principle × (1 + Rate/100)}
⇒ (₹ 676)/(₹ 650) = (1 + Rate/100)
Principle = (Amount at the end of first year)/(1 + Rate/100)
⇒ Principle = (650)/{(676)/(650)}
⇒ Principle = (650)2/(676)
⇒ Principle = (422500)/(676)
⇒ Principle = ₹ 625
∴ The compound interest sum is ₹ 625.