A sum becomes ₹7,200 in 2 years and ₹8,640 in 3 years at compound interest. What is the original principal?

Question

Accepted Answer

1. Find the yearly growth factor: $8640/7200 = 1.2$, so the rate is $20\%$.
2. After 2 years the amount is $P(1.2)^2 = P	imes1.44 = 7200$.
3. Solve for $P$: $P = 7200/1.44 = 5000$.
4. The original principal is ₹5,000, choice **(b)**.

FINAL_ANSWER: b

Answer

Answer

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