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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

A
Rs. 2,400
CORRECT ANSWER WRONG ANSWER
B
Rs 2,800
CORRECT ANSWER WRONG ANSWER
C
Rs 2,000
CORRECT ANSWER WRONG ANSWER
D
Rs 1,600
CORRECT ANSWER WRONG ANSWER
Solution

Correct option is

(C)

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