Question : A sum becomes Rs. 1,352 in 2 years at 4% per annum compound interest. The sum is:
Option 1: Rs. 1,225
Option 2: Rs. 1,270
Option 3: Rs. 1,245
Option 4: Rs. 1,250
Correct Answer: Rs. 1,250
Solution :
Total amount = Principal + Compound interest = Rs. 1,352
Rate = 4%
Time = 2 years
Let
We know,
Hence, the correct answer is Rs. 1,250.