Discussion
A sum of money amounts to Rs.6690 after 3 years and to Rs.10035 after 6 years on compound interest. Then the sum of money is:
Answer: C
The sum of money is Rs. 4460.
Under compound interest, each further 3 years multiplies the amount by the same factor. From year 3 to year 6 the amount grows by 10035 / 6690.
\[ \begin{aligned} (1 + r)^3 &= \frac{10035}{6690} = 1.5 \\ P &= \frac{6690}{1.5} = 4460 \end{aligned} \]
The first 3 years multiply the principal by the same 1.5, so the principal is 6690 divided by 1.5. Check: \(4460 \times 1.5 = 6690\) and \(6690 \times 1.5 = 10035\).
4260, 4360 and 4560 do not grow to 6690 by this factor; for instance \(4560 \times 1.5 = 6840\).
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