Question

100 will become after 20 years at 5% p.a compound interest of (a) 250 (b) * 205 (c) 7 165.33 (d) none of​

Answer 1

Answer:

205

Step-by-step explanation:

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Answer 2

Answer:

165.33 (Option c)

Step-by-step explanation:

We're given Principal, time and rate. We've to calculate Compound Interest. We will calculate amount first then using amount we will calculate compound interest.

Principal = $100.

Time = 20years.

Rate = 5%.

${\color{blue}\bigstar \: \: \: \: \sf{\boxed{\sf{{A = P\Bigg(1 + \frac{R}{100}\Bigg)^n}}} \: \: \: \:\bigstar}}\\ \\ \\\rm:\longmapsto{A =100\Bigg(1 + \frac{5}{100}\Bigg)^{20}} \: \\ \\ \\\rm:\longmapsto{A = 100\Bigg(1 + \frac{1}{20}\Bigg)}^{20} \\ \\ \\\rm:\longmapsto{A = 100\Bigg( \frac{21}{20}\Bigg)^{20}}\\ \\ \\\rm:\longmapsto{A = 100(1.05)^{20}} \\ \\ \\\rm:\longmapsto{A = 100 \times2.65329} \\ \\ \\:{\color{blue}\longmapsto{\boxed{\sf{Amount =265.329}}}}$

Now,

$\boxed{\sf{C.I. = Amount - Principal}}$

$:\implies\rm{C.I. = 265.329 - 100}$

${\color{blue}\therefore\rm{Compound \: Interest =\ 165.33.}}$

Hence, option (c) is correct.

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