Question

Find the sum of simple interest and compound interest on Rs. $10,000$ for $2$ years, compounded annually at $10\%$ per annum both exclusively.

• A. $4200$
• B. $4000$
• C. $4100$
• D. $4500$

Answer 1

Answer: (C)

$4100$

We know $S.I.=\frac{P\times R\times T}{100}$

$\Rightarrow$ $S.I.=\frac{10000\times 10\times 2}{100}=$ Rs. $2000$

and,

$\Rightarrow$ $C.I.=P{(1+\frac{R}{100})}^T-P$

$\Rightarrow$ $C.I.=10000\times {(1+\frac{10}{100})}^2-P$

$\Rightarrow$ $C.I.=10000\times {\left(\frac{11}{10}\right)}^2-10000$

$\Rightarrow$ $C.I.=$ Rs. $2100$

Therefore, $S.I.+C.I.=$ Rs. $2000$ $+$ Rs. $2100=$ Rs. $4100.$