Question

The compound interest on $Rs.100$ for the first year is $5p.c.$ and second year is $6p.c.$ What is the interest after two years?

• A. $Rs.11$
• B. $Rs.11.30$
• C. $Rs.111.30$
• D. $Rs.10.30$

Answer 1

Answer: (B)

$Rs.11.30$

$A=Rs.100(1+\frac{5}{100})(1+\frac{6}{100})$
$=Rs.100\times \frac{21}{20}\times \frac{53}{50}=Rs\frac{21\times 53}{10}$
$\therefore C.I.=Rs.\frac{21\times 53}{10}-Rs.100=Rs.11.30$