A certain sum amounts to ₹14,641 in 4 years at 10% p.a. when interest is compounded annually. What will be the amount of the same sum (in ₹) in years at the same rate at simple interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 13,400.
A = P × (1 + R/100)n
⇒ 14641 = P(1 + 10/100)4
⇒ 14641 = P(11/10)4
⇒ P = 14641 × (10/11) × (10/11) × (10/11) × (10/11) = 10000
SI = (P × R × T)/100
= (10000 × 10 × 3.4)/100 = 3400
Final amount = 10000 + 3400 = 13400