Question

Saurabh invests $Rs.48,000$ for $7$ year at $10\%$ per annum compound interest. Calculate the interest for the first year.

• A. $Rs.4,800$
• B. $Rs.4,900$
• C. $Rs.5,000$
• D. $Rs.5,100$

Answer 1

The correct option is A $Rs.4,800$

Given:

$P=Rs.48000$

$r=10\%$

$t=1$ year

$CI$ for $1^{st}$ year $=$ $SI$ for $1^{st}$ year

$=\frac{PRT}{100}$

$=\frac{48000\times 10\times 1}{100}$

$=Rs.4800$

Hence, option $A$ is correct.