Advertisements
Advertisements
Question
The compound interest on Rs 50,000 at 4% per annum for 2 years compounded annually is ______.
Options
Rs 4,000
Rs 4,080
Rs 4,280
Rs 4,050
Advertisements
Solution
The compound interest on Rs 50,000 at 4% per annum for 2 years compounded annually is Rs 4,080.
Explanation:
Given, principal (P) = Rs. 50000
Rate of interest (R%) = 4% per annum
Time period (T) = 2 years
We know that,
`A = P(1 + R/100)^T`
∴ `A = 50000(1 + 4/100)^2`
= `50000(1 + 1/25)^2`
= `50000 xx 26/25 xx 26/25`
= 80 × 26 × 26
= Rs 54080
∴ Compound interest, CI = A – P
= Rs 54080 – Rs 50000
= Rs 4080
Hence, Rs 4,080
APPEARS IN
RELATED QUESTIONS
Calculate the amount and compound interest on Rs 8000 for 1 year at 9% per annum compound half yearly. (You could use the year by year calculation using SI formula to verify)
Find the difference between the compound interest and simple interest. On a sum of Rs 50,000 at 10% per annum for 2 years.
In how many years ₹ 700 will amount to ₹ 847 at a compound interest rate of 10 p.c.p.a.
Ramesh invests Rs. 12,800 for three years at the rate of 10% per annum compound interest. Find:
- the sum due to Ramesh at the end of the first year.
- the interest he earns for the second year.
- the total amount due to him at the end of the third year.
During every financial year, the value of a machine depreciates by 12%. Find the original cost of a machine which depreciates by Rs. 2,640 during the second financial year of its purchase.
Find the compound interest for `2 1/2` years on ₹ 4000 at 10% p.a, if the interest is compounded yearly
A principal becomes ₹ 2028 in 2 years at 4% p.a compound interest. Find the principal
The time taken for ₹ 4400 to become ₹ 4851 at 10%, compounded half yearly is _______
Find the rate of compound interest at which a principal becomes 1.69 times itself in 2 years
Compound interest is the interest calculated on the previous year’s amount.
