Question

A certain sum was invested at 40% p.a compound interest for two years and the interest was compounded annually. If the interest was compounded half-yearly, the amount payable of maturity after two years would have been ` 4,544 more. What was the sum invested?

• A. ` 42,500
• B. ` 40,000
• C. ` 42,000
• D. ` 37,500

Answer 1

Answer: (B)