Compound interest on ₹ 18,000 for 2 1/2 years at 10% per annum

Leo Downs

Leo Downs

Answered question

2023-03-13

" Compound interest on ₹ 18,000 for 2 1 2 years at 10% per annum, compounded annually is
A) ₹ 4,900
B) ₹ 4,749
C) ₹ 4,869
D) ₹ 4,722"

Answer & Explanation

pritajena90k

pritajena90k

Beginner2023-03-14Added 6 answers

"The correct option is C) ₹ 4,869

Here, Principal (P) = ₹ 18,000, Time (n) = 2 1 2 years, Rate of interest (R) = 10% p.a.
For 2 years:
A m o u n t ( A ) = P ( 1 + R 100 ) n
=18000(1+ 10 100 ) 2
=18000(1+ 1 10 ) 2
=18000 ( 11 10 ) 2
= 18000 × 11 10 × 11 10
= ₹ 21,780
Interest for 6 months on ₹ 21,780 at rate of 10% p.a. = 21780 × 10 × 1200 = 1 , 089
Total amount for 2 1 2 years = ₹ 21,780 + ₹ 1089 = ₹ 22,869
Compound Interest (C.I) = A - P = ₹ 22,869 - ₹ 18,000 = ₹ 4,869

"

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