If interest is being compounded annually. then what sum will amount to Rs. 9464 in 2 years at the rate of 30 percent per annual at compound interest?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 5600.
A = 9464
r = 30% = 0.30
n = 2
A = P(1 + r)n
P = A/(1 + r)n
⇒ P = 9464/(1 + 0.30)2
⇒ P = 9464/1.69
⇒ P = 5600