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    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.
    A Rs. 25,000 Correct Answer Incorrect Answer
    B Rs. 24,000 Correct Answer Incorrect Answer
    C Rs. 28,000 Correct Answer Incorrect Answer
    D Rs. 20,000 Correct Answer Incorrect Answer

    Solution

    Let assume the sum invested Rs. 'x' ATQ; Total amount recieved = x X (1 + 8/100) 2 or, (x X 3328) =   x X (1 + 8/100) 2  or, (x X 3328) =   x X (27/25) 2  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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