A sum amounts to Rs. 2916 in 2 years and to Rs.3149.28 in 3 years at compound Interest. The sum is_________?
A. Rs.1500
B. Rs.2000
C. Rs.2500
D. Rs.3000
Explanation:
P be the principle and R % per annum be rate
P(1 + R/100)3 = 3149.28 – (i)
P(1 + R/100)2 = 2916 – (ii)
By dividing (i) and (ii)
(1 + R/100) = 3149.28/2916 R/100 = 233.28/2916
or R =233.28/2916 x 100 = 8 %
P(1 +8/100)2 = 2916 or
P × 27/25 × 27/25 = 2916
Or = 1822500/729= Rs.2500