Question

Ramesh invests ₹12800 for three years at the rate of 10% per annum compound interest. Find the sum due to Ramesh at the end of the first year.

• A. ₹15060
• B. ₹14000
• C. ₹14080
• D. ₹13090

Answer 1

The correct option is C

₹14080

We know that S.I. = $\frac{PRT}{100}$

where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).

Here, P = ₹12800, R = 10%

For 1 year compund interest is equal to simple interest.

Simple Interest for one year $=\frac{PRT}{100}=\frac{(12800\times 10\times 1)}{100}=₹1280$

So, sum due after one year = 12800 + 1280 = ₹14,080

Alternativley, we can find the same using the amount formula for compound interest i.e A = $P\times (1+\frac{R}{100}{)}^n$

So, A = $12800\times (1+\frac{10}{100}{)}^1$

A = $\frac{12800\times 110}{100}$

A = ₹14,080