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Q. An amount becomes 8028 in 3 years at a fixed percentage interest rate and 12042 in 6 years, when the interest is compounded annually. What is the actual amount?

  • (A). Rs.5352
  • (B). Rs.5235
  • (C). Rs.5253
  • (D). Rs.5325
Option (A) is Correct

Given,
Fixed percentage interest rate,
Amount becomes 8028 in 3 years,
$$12042 = P(1+r/100)^6 …(i)$$
$$8028 = P(1+r/100)^3$$
$$8028^2 = P^2(1+r/100)^6 …(ii)$$
Dividing (ii) by (i), we get
$$P = (8028xx8028)/12042 = 5352$$

Posted on: Mar 2023
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