What sum of money put at C.I amounts in 2 years to $8820 and in 3 years to $9261
A. $8200
B. $8400
C. $8000
D. $7500
E. None
A. $8200
B. $8400
C. $8000
D. $7500
E. None
Let us assume the sum of money is S and rate of compound interest r percent per year.rupsk wrote:What sum of money put at C.I amounts in 2 years to $8820 and in 3 years to $9261?
After 1 year, sum of money = S(1 + r/100)
After 2 years, sum of money = S(1 + r/100)^2 = 8820 ............. (1)
After 3 years, sum of money = S(1 + r/100)^3 = 9261 ............. (2)
Dividing cube of (1) by square of (2), (S^3)/(S^2) = (8820^3)/(9261^2)
Hence, S = (20*(21^2))^3/(21^3)^2 = 20^3 = 8000
The correct answer is C.
