A sum of Rs. 8,000 is deposited for 3 years at 5% per annum compound interest (compounded annually). The difference of interest for 3 years and 2 years will be
A) Rs. 387
B) Rs. 441
C) Rs. 469
D) Rs. 503
Answers
Answer:
Step-by-step explanation:
1st year deposition:-
Simple interest=Pricipal X Rate of
interestt X time
---------------------------
100
therefore, = ₹8000X5X1
----------------- = ₹400
100
Amount= principal + simple
interest
therefore, = ₹8000+₹400=8400
2nd year deposition:-
Simple interest= 8400X5X1
-------------------= ₹420
100
Amount=8400+420=8820
(Compound Interest=amount -
principal, 8820-8000=820)
3rd year deposition: -
simple interest- 8820X5X1
----------------=441
100
Amount = 9261 (8820+441)
compound interest= 9261-8000
=1261
:- As per question difference lf 3rd year deposition and 2nd year deposition = ₹1261 - ₹820
=₹441
So,(b) 441 is the answer
hope this cleared the doubt