Question

Abhinav invested a certain amount at the rate of $8$ p.c.p.a for $5$ years and obtained a $SI$ of $Rs.3800$.Had he invested the same amount then how much would she have obtained as $CI$ at the end of $2$ years?

• A. $Rs.1520$
• B. $Rs.1550.5$
• C. $Rs.1550$
• D. $Rs.1580.8$

Answer 1

The correct option is D $Rs.1580.8$

It is known that,

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

According to the given condition,

$\Rightarrow 3800=\frac{P\times 8\times 5}{100}$

$\Rightarrow P=\frac{3800\times 100}{5\times 8}=\frac{3800\times 5}{2}=1900\times 5$

$\Rightarrow P=9500$

For C.I for $2$ years

$A=P{(1+\frac{R}{100})}^2$

$\Rightarrow A=9500{(1+\frac{8}{100})}^2$

$=9500{\left(1.08\right)}^2$

CI$=$A$-$P

$=9500{\left(1.08\right)}^2-9500$

$=Rs1580.8$