Question

    A certain sum is invested on compound interest at 18%

    per annum for 1 year 4 months, the interest being compounded 8-months, If the compound interest is ₹3,816, then find the sum (in ₹).
    A 14,580 Correct Answer Incorrect Answer
    B 15,500 Correct Answer Incorrect Answer
    C 15,000 Correct Answer Incorrect Answer
    D 14,800 Correct Answer Incorrect Answer

    Solution

    1 year 4 months = 16 months So, for 8 monthly compound interest t will be 16/8 = 2 Now, 18% for 12 months So, 12% for 8 months Let the principal be P So, 3816 = P (1 + 12/100)2 - P 3816 = P (112/100)2 - P 3816 = P (28/25)2 - P 3816 = (784P / 625) - P 3816 = (784P - 625P) / 625   3816 × 625 = 159P   P = 24 × 625   P = 15000 So, principal = Rs. 15000

    Practice Next
    More Simple and compound interest Questions

    Relevant for Exams:

    ask-question