Question

The compound interest on Rs. $2000$ in $2$ years, if the rate of interest is $4\%$ per annum for the first year and $3\%$ per annum for the second year will be

• A. Rs. $142.40$
• B. Rs. $140.40$
• C. Rs. $141.40$
• D. Rs. $143.40$

Answer 1

Answer: (A)

Rs. $142.40$

Given, $P=$ Rs. $2000$, $r_1$ $=4\%$ p.a. for $1^{st}$ year, $r_2$ $=3\%$ p.a. for $2^{nd}$ year
$\therefore A=P(1+\frac{r_1}{100})(1+\frac{r_2}{100})$

$=2000(1+\frac{4}{100})(1+\frac{3}{100})$
$=$ Rs. $(2000\times \frac{26}{25}\times \frac{103}{100})=$ Rs. $2142.40$
$\therefore$ C.I. $=$ Rs. $2142.40-$ Rs. $2000=$ Rs. $142.40$