Question

What would be the compound interest if Rs.200 is borrowed for 40 months at 6% interest annually.

Answer 1

Answer:

Correct option is

C

10

Given, Amount = Rs. 220, Principle = Rs. 200, Time =1 year

1 year simple interest and compound interest are equal.

So Interest =220−200= Rs. 20

S.I. =

100

PRT

R=

P×T

S.I. ×100

R=

200×1

20×100

R=10%