Question

A man invests Rs. 1,200 for two years at compound interest. After one year his money amoiunts to Rs. 1,275. Find the interest for the second year correct to the nearest rupee.

• A. Rs. 60
• B. Rs. 80
• C. Rs. 100
• D. Rs. 120

Answer 1

Answer: (B)

Rs. 80

Sum=Rs.1200

Amount after one year=Rs.1275

interest for one year$=1275-1200=Rs.75$

C.I for one year=S.I for one year

$interest=\frac{PRT}{100}$

$\Rightarrow 75=\frac{1200\times R\times 1}{100}$

$\Rightarrow R=\frac{75\times 100}{1200\times 1}$

$\Rightarrow R=6\frac{1}{4}$%

For second year

Sum=Rs.1275

$interest=\frac{1275\times 25\times 1}{100\times 4}=79.68=Rs80$