Question

    What is the compound interest on a sum of ₹19,500

    invested for 1(2/5) years at 10% p.a., interest compounded annually?
    A ₹2,608 Correct Answer Incorrect Answer
    B ₹2,480 Correct Answer Incorrect Answer
    C ₹2,808 Correct Answer Incorrect Answer
    D ₹2,880 Correct Answer Incorrect Answer

    Solution

    Interest rate for 2/5 years = 10 × (2/5) = 4% Now, A = 19500(1 + 10/100)1 × (1 + 4/100)2/5 A = 19500(1 + 10/100) × (1 + 4/100) A = 19500(1 + 1/10) × (1 + 1/25) A = 19500(11/10) × (26/25) A = 22308 So, interest of the given years = 22308 - 19500 Rs. 2808

    Practice Next