Question
On a certain sum of money, compound interest earned at the end of three years = Rs. 1456. Compound interest at the end of two years is Rs. 880. Compute the principal invested.
CAT 2021
Correct option is
Explanatory Answer
Let Principal = P
rate of interest = r%
acc. to ques ,
[end of 3 years]
[end of 2 years]
dividing both eqns
after solving , we get
r= 1/5 , hence r = 1/5*100 = 20%
after putting value of r in any eqn , we get ,
P=2000
Hence , C is the correct option