The principal increases by 14% in 2 years at simple interest, what wi

1.	The principal increases by 14% in 2 years at simple interest, what will be the compound interest earned (in Rs) on Rs10,000 in 3 years at the same rate?1. Rs.2250.902. Rs.2250.433. Rs.22504. Rs.2350.43
Answer» Correct Answer - Option 2 : Rs.2250.43 Given: Time (T) = 2 years Time (n) = 3 years Formula used: S.I. = (P × R × T)/100 A = P(1 + R/100)n Where A → amount n → time S.I. → Simple Interest P → Principal R → Rate T → Time Calculations: Let the principal be Rs. P and the rate be R p.a. The principal after 2 years = P + 14P/100 According to the question, P + 14P/100 = P + (P × R × 2)/100 ⇒ 1 + (14/100) = R/50 ⇒ R = 50 × (14/100) = 7% Now A = 10000(1 + 7/100)³ ⇒ A = 10000 × (107/100) × (107/100) × (107/100) ⇒ A = Rs.12250.43 Thus C.I. = 12250.43 - 10000 = Rs.2250.43 ∴ The compound interest earned on Rs10,000 in 3 years is Rs.2250.43.

The principal increases by 14% in 2 years at simple interest, what will be the compound interest earned (in Rs) on Rs10,000 in 3 years at the same rate?1. Rs.2250.902. Rs.2250.433. Rs.22504. Rs.2350.43

Answer» Correct Answer - Option 2 : Rs.2250.43

Given:

Time (T) = 2 years

Time (n) = 3 years

Formula used:

S.I. = (P × R × T)/100

A = P(1 + R/100)n

Where A → amount

n → time

S.I. → Simple Interest

P → Principal

R → Rate

T → Time

Calculations:

Let the principal be Rs. P and the rate be R p.a.

The principal after 2 years = P + 14P/100

According to the question,

P + 14P/100 = P + (P × R × 2)/100

⇒ 1 + (14/100) = R/50

⇒ R = 50 × (14/100) = 7%

Now

A = 10000(1 + 7/100)³

⇒ A = 10000 × (107/100) × (107/100) × (107/100)

⇒ A = Rs.12250.43

Thus C.I. = 12250.43 - 10000 = Rs.2250.43

∴ The compound interest earned on Rs10,000 in 3 years is Rs.2250.43.

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