Question
A sum of money was invested at an annual compound
interest rate of 8%, with interest compounded yearly. After 2 years, the total interest earned was Rs. 3,328. Determine the initial amount of money that was invested.Solution
Let assume the sum invested Rs. 'x' ATQ; Total amount recieved = x X (1 + 8/100) 2 or, (x X 3328) =Â Â x X (1 + 8/100) 2Â or, (x X 3328) =Â Â x X (27/25) 2Â Or, 625 X (x + 3328) = 729x Or, 625x + 2080000 = 729x Or, (729x - 625x) = 2080000 Or, 104x = 2080000 Or, x = 20000 Therefore, sum invested = Rs. 20,000 Hence, option d.
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