A sum of money becomes Rs 11, 880 after 4 years and Rs 17,820 after 6 years on compound interest, if the interest is compounded annually. What is the half of the sum (in Rs)?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 2,640
According to the question,
17820 = P(1 + r/100)6 ............(1)
11880 =P(1 + r/100)4..............(2)
(2) ÷ (1) we get,
3/2 = (1 + r/100)2..............(3)
On putting the value of (3) in (2) we get,
17820 = P(3/2)3
P = 5280
Half of 5280 = 2640.