Question

Calculate the amount and the compound interest on :

Rs. $3,500$ at $10\%$ per annum in $2$ years

• A. Rs. $4,935$ and Rs. $529$.
• B. Rs. $4,235$ and Rs. $735$.
• C. Rs. $3,506$ and Rs. $825$.
• D. Rs. $3,120$ and Rs. $900$.

Answer 1

The correct option is B Rs. $4,235$ and Rs. $735$.

$A=P{(1+\frac{R}{100})}^n$
Here, $P=3500,R=10\%,n=2$ years
$A=3500{(1+\frac{10}{100})}^2$

$A=3500\times \frac{110}{100}\times \frac{110}{100}$

$A=35\times 121=4235Rs.$
$C.I=A-P=4235-3500=735Rs.$