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The sum for 2 years gives a compound int...

The sum for 2 years gives a compound interest of `Rs. 3225` at the rate of `15%` per annum. The sum is

A

`Rs. 10000 `

B

`Rs. 20000 `

C

`Rs. 15000 `

D

`Rs. 32250`

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The correct Answer is:
To find the principal sum (P) that gives a compound interest of Rs. 3225 at a rate of 15% per annum for 2 years, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the Formula for Compound Interest**: The formula for compound interest is: \[ A = P \left(1 + \frac{r}{100}\right)^t \] where: - \( A \) = Amount after time \( t \) - \( P \) = Principal amount (initial sum) - \( r \) = Rate of interest per annum - \( t \) = Time in years 2. **Identify the Given Values**: From the question: - Compound Interest (CI) = Rs. 3225 - Rate (r) = 15% - Time (t) = 2 years 3. **Relate Compound Interest to Amount**: The compound interest can also be expressed as: \[ CI = A - P \] Therefore, we can express the amount \( A \) as: \[ A = P + CI \] Substituting the value of CI: \[ A = P + 3225 \] 4. **Substitute the Amount in the Compound Interest Formula**: Substitute \( A \) in the compound interest formula: \[ P + 3225 = P \left(1 + \frac{15}{100}\right)^2 \] Simplifying the right side: \[ P + 3225 = P \left(1 + 0.15\right)^2 = P \left(1.15\right)^2 \] Calculate \( (1.15)^2 \): \[ (1.15)^2 = 1.3225 \] Therefore, we have: \[ P + 3225 = 1.3225P \] 5. **Rearranging the Equation**: Rearranging gives: \[ 1.3225P - P = 3225 \] Simplifying: \[ 0.3225P = 3225 \] 6. **Solve for Principal (P)**: Divide both sides by 0.3225: \[ P = \frac{3225}{0.3225} \] Calculating the right side: \[ P = 10000 \] ### Final Answer: The principal sum is **Rs. 10,000**. ---
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