What sum invested now at 8% per annum compound interest will amount to Rs. 29,160 in 2 years?
Correct answer A. Rs. 25,000
Explanation
P = 29160 / (1.08)² = 29160 / 1.1664 = Rs. 25,000. Check: 25000 × 1.08 = 27000 and 27000 × 1.08 = 29160.
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