Question

8. The compound interest on Rs 50,000 at 4% per annum for 2 years compounded annually is
(a) Rs 4,000 (b) Rs 4,080 (c) Rs 4,280 (d) Rs 4,050

Answer 1

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Principal AMOUNT = Rs 50,000

Rate of interest = 4%

Time period = 2 years

Compound Interest = PTR/100

= 50000 X 4 X 2 / 100

= Rs 4,000

So the compound interest is Rs 4,000

Note :

PTR means principal amount X time period X rate of interest

Correct option :

Option A