A sum amounts to Rs. 18,600 after 3 years and to Rs. 27,900 after 6 years, at a certain rate percent p.a, when the interest is compounded annually. The sum is:

Answer: Option B

Solution

Answer: Option B

Solution:

$$\begin{array}{rl}& \text{P}\times \frac{27,900}{18,600}=18,600\\ & \text{P}=\frac{18,600\times 186}{279}\\ & \text{P}=12,400\end{array}$$