Compound interest initial investment

CMAT 2018 · Quantitative Techniques & Data Interpretation · Easy · Compound Interest

A certain amount of money invested at 10% per annum compound interest for two years became Rs. 2000. What is the initial investment?

Answer

Formula: $A = P\left(1 + \frac{r}{100}\right)^n$

$2000 = P(1.1)^2 = 1.21 P$ $P = \frac{2000}{1.21} \approx 1652.89 \approx \text{Rs. 1,653.}$

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