📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Diksha invested Rs. x in a scheme that offers compound

      interest at a rate of 31.25% per annum, compounded annually. The difference between the amount she receives after 3 years and 2 years is Rs. 22,050. Determine the initial investment value, x.
      A Rs. 40,960 Correct Answer Incorrect Answer
      B Rs. 40,320 Correct Answer Incorrect Answer
      C Rs. 56,760 Correct Answer Incorrect Answer
      D Rs. 30,540 Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      Given rate of interest = 31.25% = (5/16)

      Amount received from compound interest = P X (1 + rate/100) time

      So, amount received after 2 years = x X {1 + (5/16) }2 = Rs. {x X (21/16) 2}

      Amount received after 3 years = x X {1 + (5/16) }3 = Rs. {x X (21/16) 3}

      ATQ,

      {x X (21/16) 3} - {x X (21/16) 2} = 22050

      Or, x X (21/16) 2 X (21 - 16) = 22050 X 16

      Or, x = 22050 X (16/5) X (256/441)

      So, 'x' = 40,960

      Practice Next
      More Simple and compound interest Questions

      Relevant for Exams:

      ask-question