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    Question

    The interest earned on investing Rs. 7000 for 2 years at

    the rate of 10% p.a., compounded annually, is used to purchase an article. If the article is later sold at 22% profit, then find the selling price of the article.
    A Rs. 1793.4 Correct Answer Incorrect Answer
    B Rs. 1790.4 Correct Answer Incorrect Answer
    C Rs. 1693.4 Correct Answer Incorrect Answer
    D Rs. 1893.4 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound interest earned = 7000 × {1 + (10/100)}2 – 7000 = 8470– 7000 = Rs. 1470 So, selling price of the article = 1470 × 1.22 = Rs. 1793.4

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