An industrialist borrowed the $R s 75, 000$ for two years at the rate $2.5 %$ p.a.compounded annually. Calculate the total amount compound interest by simple interest method.

2750

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3750

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78, 795

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78, 796.87

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Solution

The correct option is D $78, 796.87$
$P = 75000, R = 2.5$ %, Time $= 2$ yrs

Interest in $1$ st year $= \frac{P \times R \times T}{100}$

$= \frac{75000 \times 2.5 \times 1}{100}$

$= 1875$

$P^{'} = (1875 + P)$

Interest in $2$ nd year $= \frac{P^{^{'}} \times R \times T}{100}$

$= \frac{76875 \times 2.5 \times 1}{100}$

$= 1921.875$

Total interest $= 1875 + 1921.875$

$= 3796.875$

Total amount=Principal $+$ Total interest

$= 75000 + 3796.875$

$= 78796.875$

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An industrialist borrowed the Rs 75,000 for two years at the rate 2.5% p.a.compounded annually. Calculate the total amount compound interest by simple interest method.

The correct option is D 78,796.87P=75000,R=2.5%, Time=2yrsInterest in 1st year=P×R×T100=75000×2.5×1100=1875P′=(1875+P)Interest in 2nd year=P′×R×T100=76875×2.5×1100=1921.875Total interest=1875+1921.875=3796.875Total amount=Principal+Total interest=75000+3796.875=78796.875

An industrialist borrowed the $R s 75, 000$ for two years at the rate $2.5 %$ p.a.compounded annually. Calculate the total amount compound interest by simple interest method.