A certain amount invested at compound interest of 10% per annum, compounded annually, amounts to ₹3,630 in 2 years. What is 40% of the amount invested?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹1,200
Amount = P(1 + R/100)n
⇒ 3630 = P(1 + 10/100)2
⇒ 3630 = 1.21P
⇒ P = 3630/1.21 = 3000
Amount invested = (40/100) × 3000 = 1200