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Question

Calculate the simple interest and compound interest for a principal of ₹ 25,000 at the rate of 10% per annum for two years.

A
SI = ₹ 5,000, CI = ₹ 5,250
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B
SI = ₹ 5,250, CI = ₹ 5,000
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C
SI = ₹ 5,000, CI = ₹ 5,000
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D
SI = ₹ 5,250, CI = ₹ 5,250
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Solution

The correct option is A SI = ₹ 5,000, CI = ₹ 5,250
Given,
P = ₹ 25,000 , N =2 years , R = 10%

Simple Interest:
SI =PNR100 = 25,000×10×2100
= ₹ 5,000

Compound Interest:
For 1st year the principal is ₹ 25,000
CI =PNR100 = 25,000×10×1100
= ₹ 2,500...(i)
For 2nd year the principal is = ₹ 25,000 + ₹ 2,500
= ₹ 27,500
CI =PNR100 = 27,500×10×1100
= ₹ 2,750...(ii)
CI for 2 years is = (i) +(ii)
=₹ 2,500 + ₹ 2,750
=₹ 5,250.


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