The compound interest on ₹ 4000 at 10% per annum for 2 years 3 month

1.	The compound interest on ₹ 4000 at 10% per annum for 2 years 3 months , compounded annually, is(a) ₹ 916 (b) ₹ 900 (c) ₹ 961 (d) ₹ 896
Answer» (c) ₹ 961 Explanation: Present value= ₹ 4000 Interest rate= 10% per annum Time=2 ¼ years To find the amount we have the formula, Amount (A) = P (1+(R/100))ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 4000 (1 + 10/100)² [1 + (10/4)/100] ⇒ A = 4000 (1+1/10)²(1+ (5/2)/100) ⇒ A = 4000 (121/100) (41/40) ⇒ A = 121 × 41 ⇒ A = ₹ 4961 ∴ Compound interest = A – P = 4961 – 4000= ₹ 961

The compound interest on ₹ 4000 at 10% per annum for 2 years 3 months , compounded annually, is(a) ₹ 916 (b) ₹ 900 (c) ₹ 961 (d) ₹ 896

Answer»

(c) ₹ 961

Explanation:

Present value= ₹ 4000

Interest rate= 10% per annum

Time=2 ¼ years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 4000 (1 + 10/100)² [1 + (10/4)/100]

⇒ A = 4000 (1+1/10)²(1+ (5/2)/100)

⇒ A = 4000 (121/100) (41/40)

⇒ A = 121 × 41

⇒ A = ₹ 4961

∴ Compound interest = A – P

= 4961 – 4000= ₹ 961