Question

The interest earned on investing Rs. 6000 for 2 years at the rate of 8% p.a., compounded annually, is used to purchase an article. If the article is later sold at 25% profit, then find the selling price of the article.

A Rs. 1248 Correct Answer Incorrect Answer
B Rs. 1200 Correct Answer Incorrect Answer
C Rs. 1255 Correct Answer Incorrect Answer
D Rs. 1278 Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Compound interest earned = 6000 × {1 + (8/100)}2 – 6000 = 6998.4 – 6000 = Rs. 998.4 So, selling price of the article = 998.4 × 1.25 = Rs. 1248

Practice Next

Relevant for Exams:

×
×