Question

Vijay attains a loan of Rs. 64000 against his fixed deposits. If the rate of interest be 2.5 paisa per rupee per annum then calculate the compound interest payable after 3 years. 

(A) 68291 

(B) 4219 

(C) 4129 

(D) 4921 

Answer 1

Correct option (D) 4921    

Explanation:

P = Rs. 64000, n = 3 years 

R = 2.5 paisa per rupee per annum 

= (2.5 × 100) paisa per hundred rupees per annum.

= (2.5 x 100/100) percent per annum.

= 2.5% per annum.

Amount after 3 years = Rs. 64000 (1 +2.5 x 100)³

= (Rs, 64000 x 41 /40 x 41 x 40 x 41/40)

= Rs. 68921

Compound interest payable after 3 years 

= Rs. 68921 – Rs, 64000 

= Rs, 4921