LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
3.6k views
in Compound Interest by (47.4k points)

The compound interest on ₹ 5000 at 8% per annum for 2 years, compounded annually, is

(a) ₹ 800 (b) ₹ 825 (c) ₹ 832 (d) ₹ 850

1 Answer

+1 vote
by (60.1k points)
selected by
 
Best answer

(c) ₹ 832

Explanation:

Present value= ₹ 5000

Interest rate= 8% per annum

Time=2 years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))n

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 5000 (1 + 8/100)2

⇒ A = 5000 (27/25)2

⇒ A = 200 (27 × 27/25)

⇒ A = 27 (27) (8)

⇒ A = ₹ 5832

∴ Compound interest = A – P

= 5832 – 5000= ₹ 832

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...