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Question : A sum amounts to INR 7,562 in 4 years and to INR 8,469.44 in 5 years, at a certain rate per cent per annum when the interest is compounded yearly. If INR 10,000 at the same rate of interest is borrowed for two years, then what will be the compound interest (in INR)?

Option 1: 2,544

Option 2: 1,736

Option 3: 2,764

Option 4: 1,965


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: 2,544


Solution : Let P be the principal.
We know, $\text{Total Amount}=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}$
$\text{P}(1 +\frac{r}{100})^4$ = 7562 -----------------(1)
$\text{P}(1 +\frac{r}{100})^5$ = 8469.44  -------------(2)
Dividing (2) by (1) we get,
$(1 +\frac{r}{100}) = \frac{846944}{756200}$
$⇒\frac{r}{100} = 1.12 - 1$
$\therefore r = 12$
Compound Interest $=10,000 × [(1 + \frac{12}{100})^2 – 1]= 10000 × 0.2544 =$ INR $2,544$
Hence, the correct answer is INR 2,544.

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