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### Question

The compound amount after 2 years on a principal of Rs. P is same as that on a principal of Rs. (1035 - P) after 3 years, then what is P if the rate of interest is 7% p.a. compounded yearly?

**A**

Rs. 535.

**B**

Rs. 635.

**C**

Rs. 435.

**D**

Rs. 735.

**Soln.**

**Ans: a**

We have P × $(1 + 7/100)^2$ = (1035 - P) × $(1 + 7/100)^3$. Cancelling, we get P = (1035 - P) × (1 + 7/100). Simplifying, P = ${1035 × (100 + 7)}/(200 + 7)$, which gives P = Rs. 535.