Question

5) The sum of money, which earns C.I. of 612 in 2 years at 4%pa compounded
annually is
(a) 7750
(b) 8500
(c) 7500
(d) 8000
​

Answer 1

Answer:

Amount = Rs [7500*(1+(4/100)2] = Rs (7500 * (26/25) * (26/25) ) = Rs. 8112.

therefore, C.I. = Rs. (8112 - 7500) = Rs. 612.