A sum of Rs. x amounts to Rs.12,777.60 in 2 years at 15% p.a., when the interest is compounded eight-monthly. The value of x is .....
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Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs 9600.
Principal P = x
Amount A = Rs.12,777.60
Time n = 2 years = 2 × 12/8 = 3 (compounded eight-monthly)
Rate of interest r = 15% = 15 × 8/12 = 10% (compounded eight-monthly)
A = P(1 + r/100)n
⇒ 12,777.60 = x(1 + 10/100)3
⇒ 12,777.60 = x(1331/1000)
x = 12777600/1331 = 9600
x = Rs 9600