Question

The compound interest on Rs.20000 at 5% for 4 years is

A
3140
B В
3410
C
4301
D
4310​

Answer 1

Step-by-step explanation:

multipliction is repeated

Answer 2

Answer:

D. 4310

The compound interest on Rs 20000 at 5% for 4 years is Rs 4310

Step-by-step explanation:

Given, principal for first year = Rs 20000, rate= 5%

formula for compound interest CI=$P(1+\frac{r}{100} )^{n} -P$

where

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

in the given question, P = Rs 20000

r= 5%

n= 4

CI = 20000$(1+ 5/100)^{4}$- 20000

⇒CI= 20000* $(\frac{105}{100} )^{4}$ - 20000

⇒CI = 24310 - 20000

⇒CI = 4310

The compound interest on Rs 20000 at 5% for 4 years is Rs 4310