Find the principal if compound interest is charged on it at the rate of sixteen and two thirds percent per annum for two years and the sum becomes Rs. 196.
ARs. 140
BRs. 144 ✓ Correct
CRs. 150
DRs. 154
Correct answer: (B) Rs. 144
Explanation
The principal is Rs. 144.
rate = 50/3 percent = 1/6 as a fraction.
amount = P(1 + 1/6)^2 = P(7/6)^2.
P x 49/36 = 196.
P = 196 x 36 / 49.
= Rs. 144.
Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.
Practise on Mcqkart →🎓 Book an expert →