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    Question

    What will be the net CI on Rs. 8000 for 4 years at 20%

    p.a compounded annually?
    A Rs 8588.8 Correct Answer Incorrect Answer
    B Rs 5569.2 Correct Answer Incorrect Answer
    C Rs 1610.4 Correct Answer Incorrect Answer
    D Rs 536.8 Correct Answer Incorrect Answer

    Solution

    Net CI for 2 years = 20 + 20 + (20 x 20/100) = 44% So Net CI for 4 years = 44 + 44 + (44 x 44/100) = 88 + 19.36 = 107.36% Hence net CI = 107.36% of Rs. 8000 = Rs. 8588.8

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