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The compound interest accrued on an amount at the end of two years at the rate of 16% per annum is Rs 3041.28. What is the amount ?

The compound interest accrued on an amount at the end of two years at the rate of 16% per annum is Rs 3041.28. What is the amount ?
1). Rs 10500
2). Rs 9000
3). Rs 7250
4). Rs 8800

This Question has 1 answers.

We use the compound interest formula:

A = P (1 + r/100)²

Where:

A = Final amount

P = Principal amount

r = 16% (rate of interest)

t = 2 years

CI = A - P = 3041.28

Substituting values:

A = P × (1.16)²
A = P × 1.3456

Since CI = A - P, we get:

3041.28 = P × 1.3456 - P
3041.28 = P × (1.3456 - 1)
3041.28 = P × 0.3456

Solving for P:

P = 3041.28 ÷ 0.3456
P = 8800

So, the correct answer is Rs 8800 (Option 4).

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