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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 |
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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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