1.

The simple interest on sum at 6% per annum for 2 years is 180. find the amount for 2 year at same rate of interest when compounded annually.  1. 1785.402. 1585.403. 1885.404. 1685.40

Answer» Correct Answer - Option 4 : 1685.40

Given: 

Simple interest for 2 years at 6% per annum is 180.

Concept: 

SI = (P × R × T)/100

A = P(1 + r/100)n

Here, N is the number of terms in the year.

Calculation: 

The simple interest is 

⇒ 180 = (P × 6 × 2)/100

⇒ P = 1500 rupee

Now, When interest is compounded annually, then the amount is 

⇒ 1500(1 + 6/100)2 

⇒ 1500 × 106/100 × 106/100

⇒ 1685.40

∴ when interest is compounded annually then the amount is 1685.40 rupee.



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