Scheme A offers compound interest (compounded annually) at a certain rate of interest (p.c.p.a.). When a sum was invested in the scheme it amounted to Rs.14,112 after 2 years and Rs. 16,934.40 after 3 years. What was the sum of money invested ?

Let the amount invested = Rs. $$P$$

Amount under compound interest = $$A = P (1 + \frac{R}{100})^T$$

=> $$14112 = P (1 + \frac{R}{100})^2$$ ----------------Eqn (1)

$$16934.40 = P (1 + \frac{R}{100})^3$$ ----------------Eqn (2)

Now, dividing equation (2) by (1), we get :

=> $$\frac{16934.40}{14112} = (1 + \frac{R}{100})$$

=> $$1 + \frac{R}{100} = 1.2$$

Putting above value in equation (1)

=> $$14112 = P (1.2)^2$$

=> $$P = \frac{14112}{1.44}$$ = Rs. $$9,800$$