Question : A man borrowed some money and agreed to pay it off by paying Rs. 3,150 at the end of the 1st year and Rs. 4,410 at the end of 2nd year. If the rate of Compound interest is 5% per annum, then the sum is:
Option 1: Rs. 5,000
Option 2: Rs. 6,500
Option 3: Rs. 7,000
Option 4: Rs. 9,200
Correct Answer: Rs. 7,000
Solution :
Given: $A$ = Rs. 4,410, $R$ = 5% and $t$ = 2 years
We know that $A=P(1+\frac{R}{100})^{t}$
⇒ $4410=P(1+\frac{5}{100})^{2}$
⇒ $4410=P×\frac{21}{20}×\frac{21}{20}$
⇒ $P=4410×\frac{20}{21}×\frac{20}{21}$
⇒ $P=4000$
Again, A = Rs. 3150, R = 5% and t = 1 year
⇒ $3150=P(1+\frac{5}{100})^{1}$
⇒ $3150=P×\frac{21}{20}$
⇒ $P=3150×\frac{20}{21}$
⇒ $P=3000$
$\therefore$ Total sum = 4000 + 3000 = 7000
Hence, the correct answer is Rs. 7,000.
Related Questions
Know More about
Staff Selection Commission Combined Grad ...
Admit Card | Eligibility | Application | Selection Process | Preparation Tips | Result | Answer Key
Get Updates Brochure
Your Staff Selection Commission Combined Graduate Level Exam brochure has been successfully mailed to your registered email id “”.
