Question

Rs. $100$ will become______ after $20$ years at $5\%$ p.a. compound interest amount.

• A. Rs. $250$
• B. Rs. $205$
• C. Rs. $265.50$
• D. None of the above

Answer 1

The correct option is C Rs. $265.50$

$P=Rs.100,n=20,r=5\%$

$CI=P\left[\right(1+\frac{r}{100}{)}^n-1]$

$⟹CI=100\left[\right(1+\frac{5}{100}{)}^{20}-1]=265.33\approx 265.50$

Hence, amount will be $Rs.265.50$.