New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    A sum of money is invested at a rate of 12% per annum

    compound interest for 2 years. If the total amount after 2 years is ₹11,520, what is the principal amount?
    A ₹10,000.33 Correct Answer Incorrect Answer
    B ₹9,000.33 Correct Answer Incorrect Answer
    C ₹8,000.67 Correct Answer Incorrect Answer
    D ₹9,183.67 Correct Answer Incorrect Answer

    Solution

    Let the principal amount be P. The formula for compound interest is: A = P(1 + r/100)^t Where A is the amount, r is the rate, and t is the time period. Given: Amount A = 11,520 Rate r = 12% Time t = 2 years Substitute the values into the compound interest formula: 11,520 = P(1 + 12/100)^2 11,520 = P × (1.12)^2 11,520 = P × 1.2544 P = 11,520 / 1.2544 = 9,183.67 Correct Option: d

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