Question

A man receives Rs. 4464 at end of two years when he invests a principal amount for two years and would receive Rs. 5544 on the same principal amount if invested for 4.5 years. Calculate principal amount.
1. Rs. 3500
2. Rs. 3700
3. Rs. 3200
4. Rs. 3600

Answer 1

Correct Answer - Option 4 : Rs. 3600

Given:

A after 2 years = Rs. 4464

A after 4.5 years = Rs. 5544

Calculation:

Interest earned in 2.5 years = 5544 – 4464

⇒ Interest earned in 2.5 years = Rs. 1080

⇒ Interest earned in one year = 1080 × 2 / 5

⇒ Interest earned in a year = Rs. 432

⇒ Interest earned in two years = Rs. 432 × 2

⇒ Interest earned in two years = Rs. 864

Principal amount = 4464 – 864

⇒ Principal amount = Rs. 3600

∴ Principal amount is Rs. 3600