Question

Find the interest on Rs. $30,000$ for $2$ years, compounded annually at $10\%$ per annum.

• A. $6100$
• B. $6200$
• C. $6300$
• D. $6400$

Answer 1

The correct option is C $6300$

$P=Rs.30,000,T=2years$ and $R=10\%$

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

$\Rightarrow$ $A=30000\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ $A=30000\times \frac{11}{10}\times \frac{11}{10}$

$\therefore$ $A=Rs.36300$

$\Rightarrow$ $C.I.=A-P=Rs.36300-Rs.30000=Rs.6300$