Question

    Priya invests a sum of money at an annual compound interest

    rate of 8%. After 4 years, the interest accumulated is Rs. 1120. If she increases her initial investment by Rs. 1000, what will be the total amount after 4 years at the same interest rate?
    A 4581 Correct Answer Incorrect Answer
    B 4254 Correct Answer Incorrect Answer
    C 5080 Correct Answer Incorrect Answer
    D 4160 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    ATQ;
    Let 8% = 1120

    Principal = 2800

    Interest on 1000 = 8 × 10 = 160

    Total = (1120 + 160) + 2800 + 1000 = 5080

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