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  1. A sum becomes ₹ 1,352 in 2 years at 4% per annum compound interest. The sum is
    1. ₹ 1,225
    2. ₹ 1,270
    3. ₹ 1,245
    4. ₹ 1,250
Correct Option: D

Let the sum be ₹ p.
Here , A = ₹ 1352 , r = 4% , n = 2 years
Using the given formula ,

A = P1 +
r
n
100

∴  1352 = p 1 +
4
2
100

⇒  1352 = p 1 +
1
2
25

⇒  1352 = p
26
2
25

⇒  p =
1352 × 25 × 25
= ₹ 1250
26 × 26



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