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      Question

      A sum of money was invested at

      10% p.a. compound interest (compounded annually), and it amounted to Rs. 6050 at the end of 2 years. Find the original sum.
      A Rs.2500 Correct Answer Incorrect Answer
      B Rs.5000 Correct Answer Incorrect Answer
      C Rs.3500 Correct Answer Incorrect Answer
      D Rs.4250 Correct Answer Incorrect Answer

      Solution

      ATQ,

      Let the principal amount be Rs. P. So, 1.10 Γ— 1.10 Γ— P = 6050 P = [6050/(1.10 Γ— 1.10)] = 5000. Hence, the original sum is Rs. 5000.

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