A sum becomes Rs. 6,050 in 2 years at 10% p.a. What is the compound in

1.	A sum becomes Rs. 6,050 in 2 years at 10% p.a. What is the compound interest?1. 50002. 10503. 29004. 6000
Answer» Correct Answer - Option 2 : 1050 Given: Amount = Rs. 6,050 Time = 2 years Rate of interest = 10% p.a. Formula Used: [(100 + Rate of interest)/100]^Time = (Amount/Principal) Compound Interest = Amount - Principal Calculation: Let assume that Principal = x So, [(100 + Rate of interest)/100]Time = (Amount/Principal) ⇒ [(100 + 10)/100]² = (6050/ x) ⇒ (110/100) × (110/100) = (6050/ x) ⇒ (121/100) = (6050/x) By cross multiplying ⇒ x = 6050 × (100/121) ⇒ x = 5,000 Compound Interest = Amount - Principal ⇒ Compound Interest = 6,050 - 5,000 ⇒ Compound Interest = Rs. 1,050 ∴ The compound interest is Rs. 1,050 The correct option is 2 i.e. Rs. 1,050

A sum becomes Rs. 6,050 in 2 years at 10% p.a. What is the compound interest?1. 50002. 10503. 29004. 6000

Answer» Correct Answer - Option 2 : 1050

Given:

Amount = Rs. 6,050

Time = 2 years

Rate of interest = 10% p.a.

Formula Used:

[(100 + Rate of interest)/100]^Time = (Amount/Principal)

Compound Interest = Amount - Principal

Calculation:

Let assume that Principal = x

So,

[(100 + Rate of interest)/100]Time = (Amount/Principal)

⇒ [(100 + 10)/100]² = (6050/ x)

⇒ (110/100) × (110/100) = (6050/ x)

⇒ (121/100) = (6050/x)

By cross multiplying

⇒ x = 6050 × (100/121)

⇒ x = 5,000

Compound Interest = Amount - Principal

⇒ Compound Interest = 6,050 - 5,000

⇒ Compound Interest = Rs. 1,050

∴ The compound interest is Rs. 1,050

The correct option is 2 i.e. Rs. 1,050

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