16. What sum would amount to Rs. 26,620 in three years at 10% p.a. rate of compound interest?
a) 10,000
b) 20,000
c) 30,000
d) 40,000

• compund interest
  A=P(1+r/n)^nt
  since per anum, n=1
  A=26620
  on substitution
  P=20,000
• 9 years agoHelpfull: Yes(3) No(0)
• let sum =x
  x[1+10/100]^3=26620
  x=26620x[10/11]^3
  x=20000
• 9 years agoHelpfull: Yes(0) No(0)
• we go through by option elemination since amount is 26,620 so option 3 and 4 get wrong now the ROI is 10% then the only 20,000 is the only amount whose compound interest became 26,620 not only by conventional method we just look that in 3yr at rate of 10% p.a at simple interest it would be approx 6000 and so for compound it should be lumpsum 6600 so we ticked 2. 20,000
• 9 years agoHelpfull: Yes(0) No(1)