Question

compound interest at 5℅per annum is charged on 1000 rupees .The principal for second year is:
options
a--1025 rupees
b--1050rupees
c--1075rupees
d--1102rupees

Answer 1

B. 1050 rupees is the answer.
Hint:
5% of 1000 is (5/100)x1000=50 rupees interest at the end of first year.
So principal for second year is: 1000 + 50 = 1050 rupees