What principal sum under compound interest accumulates to Rs.8820 in 2 years and Rs.9261 in 3 years?
Show answer Hide answer
Answer: A. Rs.8000
Explanation
Successive compound amounts over consecutive years allow determining the exact annual interest rate. The interest earned on eighty eight twenty for one year is four forty one giving a five percent rate. Working backward from the two year amount using the five percent rate yields an initial principal of eight thousand. Compound interest grows exponentially, with each year amount acting as the principal for the next. The difference between consecutive year amounts represents the interest earned during that single year. Working backward under compound interest requires dividing by one plus the periodic interest rate.
Financial analysts use successive compound amounts to audit loan balances and growth trajectories. Investment banking applications rely on exponential growth formulas to track portfolio valuations. Understanding compound interest mechanics helps individuals evaluate long term savings instruments. Option B suggests eighty four hundred which overestimates the required initial principal sum. Option C proposes seventy five hundred which underestimates the starting principal amount. Option D offers none of these, but option A provides the correct calculated principal.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
Related questions
Q1. What is the transverse diameter of a wheel that completes 113 rotations to traverse a distance of 2km 26 decameters?
Show answer Hide answer
Answer: B. 6 4/11m
Converting the total distance of 2 kilometers and 26 decameters gives 2260 meters of linear travel. Dividing the total distance by 113 rotations yields a wheel circumference of exactly 20 meters. Dividing the circumferen...
Q2. What will be the proportion of simple interest generated by a given principal at an identical rate across 6 years compared to 9 years?
Show answer Hide answer
Answer: C. 2 : 3
Simple interest is directly proportional to time when both principal and interest rate remain constant. Comparing six years to nine years creates a direct ratio of six to nine. Simplifying the ratio of six to nine by div...
Q3. What is the volumetric capacity (in cubic cm) of a hexahedral cube whose diagonal measures 4√3 cm?
Show answer Hide answer
Answer: D. 64
The internal space diagonal of a hexahedral cube is calculated by multiplying its side length by the square root of three. Given a diagonal measurement of four times the square root of three, the side length a of the cub...
Q4. When a plaything's cost rose by 20%, the quantity of units sold dropped by 15%. What impact did this have on the retail outlet's total revenue?
Show answer Hide answer
Answer: C. 2 % increase
Increasing the price by 20 percent scales the price factor to 1.20 of its original baseline. A 15 percent drop in quantity sold scales the quantity factor down to 0.85 of its original level. Multiplying 1.20 by 0.85 give...
Q5. What is the smallest number whose double is divisible by 12, 18, 21, and 30?
Show answer Hide answer
Answer: B. 630
The least common multiple of twelve, eighteen, twenty-one, and thirty is calculated as twelve hundred sixty. The problem states that the double of the required number equals this least common multiple. Dividing twelve hu...
Q6. When grain milling incurs a 5% loss, a nation must import 20 million sacks; however, reducing the loss to 2% lowers imports to 15 million sacks. Determine the total grain yield produced natively within the country?
Show answer Hide answer
Answer: D. 166 2/3 m
A five percent milling loss requiring twenty million import sacks establishes a proportional baseline for total grain volume. Reducing the loss to two percent lowers the required import volume to fifteen million sacks of...