1.

1). Rs. 13162). Rs. 1232.53). Rs. 1234.54). Rs. 1332.5

Answer»

In CASE of SIMPLE interest,

Principal = P

Time = 4 years

RATE = 5%

Interest accrued = Rs. 2600

Simple interest = (P × R × T)/100, where P = principal, R = rate of interest and T = time period

According to problem,

⇒ 2600 = (P × 5 × 4)/100

⇒ P = (2600 × 100)/20

⇒ P = 13000

∴ In case of compound interest,

Principal = 13000

Rate = 5%

Number of years = 2

∴ Amount, A = 13000(1 + 5/100)2

⇒ Rs. 14332.5

∴ Compound interest accrued,

⇒ 14332.5 - 13000

⇒ Rs. 1332.5



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