What is the sum of money that becomes ₹4,840 at a 10% rate of compound interest (compounded annually) after two years? - Quantitative Aptitude MCQ Competitive Exams 2026 | ExamTest.live | ExamTest.live

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What is the sum of money that becomes ₹4,840 at a 10% rate of compound interest (compounded annually) after two years?

A $₹4,500$
B $₹1,500$
C $₹4,000$
D $₹3,400$

Solution & Step-by-step Explanation

Using the compound interest formula for total amount (A): A = P (1 + \frac{R}{100})^{n} Given: A = 4840, R = 10%, n = 2 years . 4840 = P (1 + \frac{10}{100})^{2} 4840 = P (1.1)^{2} 4840 = 1.21 P P = \frac{4840}{1.21} = 4000 The original sum of money is ₹4,000.

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What is the sum of money that becomes ₹4,840 at a 10% rate of compound interest (compounded annually) after two years?

A

₹4,500

B

₹1,500

C

₹4,000

D

₹3,400

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Compound Interest

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