A sum of ₹x amounts to ₹54571 in years at 12 % p.a., interest compounded after every 10 months. what is the value of x?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 41000.
Time = 2.5 years = 30 months → 3 periods (compounded every 10 months)
Rate = 12% per annum → 10% per 10 months
Amount = ₹54571
A = P(1 + R/100)n
⇒ 54571 = x × (1.1)3 = x × 1.331
⇒ x = 54571 ÷ 1.331 = ₹41,000