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A sum becomes Rs.1352 in 2 years at 4% per annum compound interest. The sum is =

a) Rs. 1270
b) Rs. 1225
c) Rs. 1245
d) Rs. 1250

Answer: d
Explanation: Let the sum be Rs. x
$$\eqalign{ & \therefore 1352 = x{\left( {1 + \frac{4}{{100}}} \right)^2} \cr & \Rightarrow 1352 = x{\left( {1 + \frac{1}{{25}}} \right)^2} \cr & \Rightarrow 1352 = x{\left( {\frac{{26}}{{25}}} \right)^2} \cr & \Rightarrow x = \frac{{1352 \times 25 \times 25}}{{26 \times 26}} \cr & \Rightarrow x = {\text{Rs}}{\text{.}}\,1250 \cr} $$

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