10 Views

Question : A sum of Rs. 3000 becomes Rs, 4320 in 2 years at a certain rate of compound interest (compounding annually). How much this sum will become after 4 years?

Option 1: Rs. 7568.50

Option 2: Rs. 6220.80

Option 3: Rs. 6516.80

Option 4: Rs. 5128.50


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Rs. 6220.80


Solution : Using the formula,
$A$ = $P(1+\frac{r}{100})^{t}$
Given that $P$ = Rs. 3000, $A$ = Rs. 4320, and $t$ = 2 years.
⇒ 4320 = 3000$(1 + \frac{r}{100})^{2}$
⇒ $(1 + \frac{r}{100})^{2}$ = $(\frac{4320}{3000})$
⇒ $(1 + \frac{r}{100})$ = $(\frac{4320}{3000})^{\frac{1}{2}}$
After 4 years, $t$ = 4
$A$ = $3000(1+\frac{r}{100})^{4}$
⇒ $A$ = $3000((\frac{4320}{3000})^{\frac{1}{2}})^{4}$
⇒ $A$ = $3000(\frac{144}{100})^{2}$
⇒ $A$ = Rs. 6220.80
Hence, the correct answer is Rs. 6220.80.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books