Question : Find the sum of money invested by a man in a scheme that offers compound interest(compounding annually) at a 6% rate of interest per annum if compound interest for 2 years is Rs. 618.
Option 1: Rs. 7000
Option 2: Rs. 9000
Option 3: Rs. 5000
Option 4: Rs. 4000

Question

Question : Find the sum of money invested by a man in a scheme that offers compound interest(compounding annually) at a 6% rate of interest per annum if compound interest for 2 years is Rs. 618.

Option 1: Rs. 7000

Option 2: Rs. 9000

Option 3: Rs. 5000

Option 4: Rs. 4000

Team Careers360 · Accepted Answer

Correct Answer: Rs. 5000

Solution : $ ext{Total Amount}= ext{Principal}[(1+\frac{ ext{Rate}}{100})^{ ext{Time}}-1]$
$⇒ ext{618}= ext{Principal}[(1+\frac{ ext{6}}{100})^{ ext{2}}-1]$
$⇒ ext{618}= ext{Principal}[(\frac{ ext{106}}{100})^{ ext{2}}-1]$
$⇒ ext{618}= ext{Principal}[(\frac{ ext{11236}}{10000})-1]$
$⇒ ext{618}= ext{Principal}[(\frac{ ext{1236}}{10000})]$
$⇒ ext{618} imes (\frac{10000}{1236})= ext{Principal}$
$ herefore ext{Principal}=5000$
Hence, the correct answer is Rs. 5000.

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Question : Find the sum of money invested by a man in a scheme that offers compound interest(compounding annually) at a 6% rate of interest per annum if compound interest for 2 years is Rs. 618.Option 1: Rs. 7000Option 2: Rs. 9000Option 3: Rs. 5000Option 4: Rs. 4000

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Question : Find the sum of money invested by a man in a scheme that offers compound interest(compounding annually) at a 6% rate of interest per annum if compound interest for 2 years is Rs. 618.
Option 1: Rs. 7000
Option 2: Rs. 9000
Option 3: Rs. 5000
Option 4: Rs. 4000