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    Question

    A certain sum invested in compound interest (compounded

    annually) grows to 5040 in three years. If the rate of interest is 25% for the first year, 40% for the second year, and 50% for the third year, then what is the sum?
    A 2000 Correct Answer Incorrect Answer
    B 2040 Correct Answer Incorrect Answer
    C 1920 Correct Answer Incorrect Answer
    D 1940 Correct Answer Incorrect Answer

    Solution

    Given - A= 5040, rтВБ=25%, rтВВ=40%, rтВГ=50% P=? So now - A=P[1+rтВБ/100] [1+rтВВ/100] [1+rтВГ/100] 5040=P [1+25/100] [1+40/100] [1+50/100] 5040=P [125/100] [140/100]]150/100] P = [5040├Ч1000000]/125├Ч140├Ч150 =5040├Ч80/14├Ч15 =403200/210=40320/21 P=1920

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