The certain sum amounts to ₹9,982.50 in 2.5 years at 12% p.a., interest compounded 10-monthly. The sum (in ₹) is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 7,500
1 year = 12 months
2.5 years = 30 months
If interest is compounded 10-monthly, time = 30/10 = 3
Rate = (12/12) × 10 = 10%
9982.5 = P × (1 + 10/100)3
⇒ 9982.5 = P × (1 + 1/10)3
⇒ 9982.5 = P × (11/10)3
⇒ P = 9982.5 × (1000/1331)
⇒ P = 7500