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    Question

    The interest earned on investing Rs. 8000 for 2 years at

    the rate of 20% p.a., compounded annually, is used to purchase an article. If the article is later sold at 24% profit, then find the selling price of the article.
    A Rs. 4354.8 Correct Answer Incorrect Answer
    B Rs. 4464.8 Correct Answer Incorrect Answer
    C Rs. 4864.8 Correct Answer Incorrect Answer
    D Rs. 4364.8 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compound interest earned = 8000 × {1 + (20/100)}2 – 8000 = 11520– 8000 = Rs. 3520 So, selling price of the article = 3520 × 1.24 = Rs. 4364.8

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