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      Question

      Aman invested 20% of an amount, denoted as Rs. 'P', in a

      compound interest scheme with an annual interest rate of 10%, compounded annually. After 2 years, he earned Rs. 840 in interest. Determine the value of 'P'.
      A 20,000 Correct Answer Incorrect Answer
      B 25,200 Correct Answer Incorrect Answer
      C 15,250 Correct Answer Incorrect Answer
      D 22,155 Correct Answer Incorrect Answer
      E none of these Correct Answer Incorrect Answer

      Solution

      ATQ, 0.2p Γ— [(1.1)2 – 1] = 840 Or, 0.042p = 840 So, p = 20000 Therefore, p = 20000

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