Question

Find the compound interest for $Rs.1,000$ for $4$ years at $5$% p.a. when it is compounded annually.

• A. $220$
• B. $218$
• C. $215$
• D. $250$

Answer 1

The correct option is C $215$

$CI=1,000={(1+\frac{5}{100})}^4-1,000$
$=1,000(1.05{)}^4-1,000$
$=1,215-1,000=215$.