Question

The compound interest on rupees 400 at 10% per annum for 2 years 3 months compound annually is
1. 916
2.900
3.961
4.896

Please answer correctly.​

Answer 1

Answer:

Principal (P)=Rs.4000

Rate of Interest (r)=10%

Time =2 years and 3 months

Here first we take n=2 years.

⇒ Amount for first 2 years (A)=P(1+

100

r

)

n

=4000(1+

100

10

)

2

=4000(

10

11

)

2

=4000×

100

121

=Rs.4840

⇒ The amount after two years =Rs.4840

⇒ Now, Principal =Rs.4840

Simple interest for last 3 months i.e.

4

1

years =

100

PRT

=

100×4

4840×10×1

=Rs.121

⇒ Amount after 2 years and 3 months =Rs.4840+Rs.121=Rs.4961

⇒ C.I.=A−P

=Rs.4961−Rs.4000

=Rs.961

∴ The compound interest is Rs.961

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