At 10% per annum compound interest, the interest for the third year on a sum is Rs. 1,936. What is the sum?
Correct answer A. Rs. 16,000
Explanation
Third-year interest = P × (1.1)² × 0.1 = 0.121P = 1936, so P = 1936 / 0.121 = Rs. 16,000.
Answer checked How we write and check questions
Discussion