Compound interest (compounding annually) on a sum for 2 years is Rs. 4180. If the rate of interest is 20 percent per annum, then what is the sum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 9500.
4180 = P(1 + 20/100)2 - P
4180 = P(1.2)2 - P
4180 = P × 1.44 - P
4180 = P(0.44)
P = 4180 / 0.44
P = 9500