Find the sum, if compound interest is Rs 618 for 2 years at 6 % per annum.
1. Rs. 5,000
2. Rs. 6,000
3. Rs. 7,000
4. Rs. 8,000
5. Rs. 1,000
1. Rs. 5,000
2. Rs. 6,000
3. Rs. 7,000
4. Rs. 8,000
5. Rs. 1,000
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Correct Answer – Option 1 : Rs. 5,000
Given:
C.I = Rs 618
T = 2 years
R = 6 % per annum
Formula used:
C.I = P[(1 + r %)t – 1]
618 = P[(1 + 6 %)2 -1] ⇒ 618 = P[(106/100)2 – 1]
⇒ 618 = P [(11236/10000) – 1 ]
⇒ 618 = P [(11236 – 10,000)/10,000]
⇒ 618 = P [ 1236/10,000]
⇒ [(618 × 10,000)/1236] = P
⇒ 5000 = P
∴ The principal is Rs. 5000