Question 121

If interest being compound half yearly then what sum (in Rs.) will amount to Rs. 38416 in 2 years at the rate of 80% per annum at compound interest ?

Solution

Let principal sum = Rs. $$P$$ and amount = Rs. 38,416

Rate of interest = 80% and time = 2 years

Amount if interest being compound half yearly = $$P(1+\frac{R}{200})^{2T}$$

=> $$P(1+\frac{80}{200})^{2\times2}=38,416$$

=> $$P\times(\frac{7}{5})^4=38,416$$

=> $$P=38,416\times\frac{625}{343\times7}$$

=> $$P=16\times625=Rs.$$ $$10,000$$

=> Ans - (C)

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