A businessman borrowed the Rs. $45$ lakh for two years at the rate $2.5 %$ p.a. compounded annually. Calculate the compound interest by simple interest method.

2, 23000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2, 27, 812.5

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

5, 65, 563

No worries! We‘ve got your back. Try BYJU‘S free classes today!

2, 00, 000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B $2, 27, 812.5$
$P = 45, 00, 000, R = 25$ %, $T = 2$
Interest for $I$ year $= \frac{P \times R \times 1}{100}$ $= \frac{4500000 \times 2.5}{100}$ $= 112500$

Principle amount for $I I$ year will be:
$P^{1} = P + 112500$ since it is compound interest

Interest in $I I$ year $= \frac{4612500 \times 2.5 \times 1}{100}$ $= 115312.5$

$\Rightarrow$ Total Interest $= 112500 + 115312.5$ $= 227812.5$

Suggest Corrections

Similar questions

Q. Ranjana borrowed the money Rs

1, 00, 000

for

3

years at the rate

3.5 %

p.a. compounded annually. Calculate interest to be paid.

Q. Rajan borrowed

R s .5000

8 % p . a .

for

3

years. Find the difference between compound interest simple interest, assuming compounded annually.

Q. Q and R borrowed Rs.26000 and Rs. 25000 respectively for a period of 2 years. Q paid simple interest at the rate of 2% p.a. while R paid compound interest at the same rate compounded annually Who paid more interest and by how much ?

Reena and Ruchira borrowed $R s . 60, 000$ and $R s . 50, 000$ respectively for a period of $3$ years. Reena paid simple interset at the rate of $10 %$ per annum, while Ruchira paid compound interest at the rate of $10 %$ compounded annually. Who paid more interest and by how much?

Q. Rs. 5,000 is borrowed at 8% for 1

\frac{1}{2}

years. Calculate the compound interest being compounded semi annually (half-yearly). What would have been the interest earned if the same amount was borrowed for simple interest at the same rate for the same duration?

Join BYJU'S Learning Program

A businessman borrowed the Rs.45 lakh for two years at the rate 2.5% p.a. compounded annually. Calculate the compound interest by simple interest method.

The correct option is B 2,27,812.5P=45,00,000,R=25%, T=2Interest for I year=P×R×1100=4500000×2.5100=112500Principle amount for II year will be: P1=P+112500 since it is compound interestInterest in II year=4612500×2.5×1100=115312.5⇒Total Interest=112500+115312.5=227812.5

A businessman borrowed the Rs. $45$ lakh for two years at the rate $2.5 %$ p.a. compounded annually. Calculate the compound interest by simple interest method.