Multiple Choice Questions

A certain sum amounts to Rs1 543 50 when invested for 2 years at 5 per annum compound interest What ...........

Quantitative Aptitude (MTS) Compound Interest

A certain sum amounts to Rs1,543.50 when invested for 2 years at 5% per annum compound interest. What is the sum (in Rs)?

This questions was previously asked in

SSC MTS 20th October 2021 Shift-3

1,500

1,400

1,200

1,600

- We are given the amount after 2 years using compound interest.

- The formula for compound interest is $A = P (1 + \frac{r}{100})^{n}$ , where A is the amount, P is the principal, r is the rate, and n is the time.

- Here, A = Rs1,543.50, r = 5%, and n = 2 years.

- Plug the values into the formula: $1543.50 = P (1 + \frac{5}{100})^{2}$ .

- Simplify: $1543.50 = P (1.1025)$ .

- Solve for P: $P = \frac{1543.50}{1.1025}$ .

- Calculate P: $P = 1, 400$ .

- Option 2: 1,400 is the correct answer.

Correct Answer: Option 2: 1,400

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