Correct Answer - Option 1 : Rs. 51.25
Given :
S.I on money for 2 year at 5% = Rs. 50
Formula used :
SI = P * R * T / 100
CA = P(1 + R/n)^nT
where,
P= principal
R= Rate
T= Time
SI = Simple Interest
CA= Compound Interest
Calculation :
SI = P * R * T / 100
50 = P * 5 * 2 /100 ; on solving get
P = 500
CA = P(1 + R/n)^nT
CA = 500 (1 + .05)^2 then CA with principal = Rs. 551.25
So CA without principal = 551.25 - 500 = Rs. 51.25
Compound Interest = Rs. 51.25