A sum is invested at compound interest payable annually. The interest in two successive years was Rs. 500 and Rs. 540. The sum is?

Question

Accepted Answer

S.I. on Rs. 500 for 1 year = 540 - 500 = Rs. 40 ∴ Rate = (100 x 40)/(500 x 1) = 8% and Sum = Rs.(100 x 500)/(8 x 1) = Rs. 6250

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