Question

A certain sum of money gives $Rs.500$ at $5$% S.I for $1$ years.What is the C.I at the same rate at the end of $2$ years?

• A. $Rs.1050$
• B. $Rs.1015$
• C. $Rs.1035$
• D. $Rs.1025$

Answer 1

The correct option is D $Rs.1025$

Given $SI=500Rs$, $rate=5\%$, $time=1year$

So, Principle $=\frac{S.I\times 100}{Rate\times time}=\frac{500\times 100}{5\times 1}=1000$

Now,$CI=P\left[\right(1+\frac{r}{100}{)}^n-1]$

where P = Principle, r = rate,

n = time

$C.I=10000[{(1+\frac{5}{100})}^2-1]={105}^2-{100}^2$

$=11015-1000$

$\Rightarrow C.I=1025Rs$