NIACL Model Paper 8 with solutions for free online practice

Question : 55 of 100

Marks: +1, -0

When a certain sum of money is invested for 2 years at the rate of 10 p.c.p.a. (compound interest compounded annually), it amounts to Rs. 2904. Had the rate of interest been 20% p.a., what would have been the amount received after 2 years ?

Rs. 3586
Rs. 3482
Rs. 3260
Rs. 3624
Rs. 3456

Validate

Solution:

(5) Let the principal be Rs. P.
∴ A = P

[1+R/100]^T

⇒

2904 = P[1 +10/100]^2

⇒

2904 = P[11/10]^2

⇒ P

={2904 ×10×10}/{11×11}

= Rs. 2400
Case II,
A = p

[1 + R/100]^T

2400 [1 +20/100]^2

= 2400[1+1/5]^2

2400 ×6/5×6/5

= Rs. 3456

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