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The compound interest earned in two years at 8% per annum is Rs. 4160. What is the sum (in Rs.) invested?

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The compound interest earned in two years at 8% per annum is Rs. 4160. What is the sum (in Rs.) invested?


1). 24000
2). 25000
3). 30000
4). 20000


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1 answers

39 vote
Answered by on | Votes 39 |

On a sum of Rs. P at a rate of R% p.a. after n years,

Compound interest = P[(1 + R/100)n - 1]

Let the sum invested be Rs. P

⇒ CI = 4160 = P[(1 + 8/100)2 - 1]

⇒ 4160 = P[0.1664]

⇒ P = 4160/0.1664 = Rs. 25000

∴ The sum invested is Rs. 25000

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