Question

How to solve the question?​

Answer 1

Given Data :

●  Principal (P) = Rs. 540

●  $\mathrm{Rate\;of\;Interest\;(R) = 16\dfrac{2}{3}\% = \left(16 + \dfrac{2}{3}\right) = \dfrac{50}{3}\%}$

●  Time (n) = 2 years

Formula to be used :

$\clubsuit\;\;\:\mathrm{Amount = P\left(1 + \dfrac{R}{100}\right)^{n}}$

Substitute all the values in the Formula -

$\longrightarrow \mathrm{Amount = 540\left(1 + \dfrac{\dfrac{50}{3}}{100}\right)^2}$

$\longrightarrow \mathrm{Amount = 540\left(1 + \dfrac{50}{300}\right)^2}$

$\longrightarrow \mathrm{Amount = 540\left(1 + \dfrac{1}{6}\right)^2}$

$\longrightarrow \mathrm{Amount = 540\left(\dfrac{7}{6}\right)^2}$

$\longrightarrow \mathrm{Amount = 540 \times \dfrac{49}{36}}$

$\longrightarrow \mathrm{Amount = 15 \times 49}$

$\longrightarrow \mathrm{Amount = Rs.\;735}$

♣  Compound Interest = Amount - Principal

$\longrightarrow$  Compound Interest = 735 - 540

$\longrightarrow$  Compound Interest = Rs. 195

Answer : Option (c)