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    Mohit borrowed some money from Kamal at 5% per annum compound interest. If after 2 years, he paid ₹ 768.75 as compound interest, he borrowed :
    Question

    Mohit borrowed some money from Kamal at 5% per annum compound interest. If after 2 years, he paid ₹ 768.75 as compound interest, he borrowed :

    A.

    ₹7500

    B.

    ₹8500

    C.

    ₹ 8000

    D.

    ₹7000

    Correct option is A

    Given
    Rate (R) = 5% p.a.
    Time (n) = 2 years
    CI = ₹ 768.75

    Formula Used
    CI=P[(1+R100)n1]CI = P[(1 + \frac{R}{100})^n - 1]​​

    Solution
    768.75=P[(1.05)21] 768.75=P[1.10251] 768.75=0.1025P P=768.750.1025=7500768.75 = P[(1.05)^2 - 1] \\\ \\768.75 = P[1.1025 - 1] \\\ \\768.75 = 0.1025 P \\\ \\P = \frac{768.75}{0.1025} = 7500​​

    Final Answer
    So the correct answer is (a)

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