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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

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B

14000

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C

14080

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D

13090

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Solution

The correct option is C

14080


We know that S.I. = PRT100

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 =PRT100=(12800×10×1)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 × (1+R100)n

So, A = 12800 × (1+10100)1

A = 12800×110100

A = ₹14,080


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