What is the compound interest on a principal of ₹5000 at the rate of 20% for 2 years?

₹2200

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

₹ 1000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

₹ 3000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

₹ 2500

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A ₹2200
Given:
Principal $P = ₹ 5000,$
Rate of interest, $r = 20 %,$ and
Time period, $n = 2$ years.
We know thatAmount, $A = P {[1 + \frac{r}{100}]}^{n}$

So, $A = 5000 {[1 + \frac{20}{100}]}^{2} = 5000 [\frac{12}{10}]^{2} = 5000 \times [\frac{144}{100}] = 50 \times 144 = ₹ 7200$

So Compound interest, C.I. = Amount - Principal
$\Rightarrow$ CI = $₹ 7200 - ₹ 5000 = ₹ 2200$

Suggest Corrections

Similar questions

The compound interest on a principal of Rs 5000 at the rate of 20% for 2 years is Rs.___.

At a certain rate of interest, the interest after $4$ years on $R s . 5000$ principal is $R s . 1200$ . What would be the interest on $R s . 15000$ at the same rate of interest for the same period?

A principal of ₹ 40,000 is compound annually at the rate of 10% for 2 years. What is the compound interest?

A principal of ₹40,000 is compound annually at a rate of 10% for 2 years. What is the compound interest?

Is compound interest greater than the simple interest for the same rate and at the same time?

Q. A principal sum of money is lent out at compound interest compounded annually at the rate of 20% per annum for 2 years . It would give Rs 2410 more if the interest is compounded half year. Find the principal sum.

Join BYJU'S Learning Program

What is the compound interest on a principal of ₹5000 at the rate of 20% for 2 years?

The correct option is A ₹2200Given: Principal P=₹ 5000, Rate of interest, r=20%, and Time period, n=2 years. We know thatAmount, A=P[1+r100]n So, A=5000[1+20100]2=5000 [1210]2=5000×[144100]=50×144=₹ 7200 So Compound interest, C.I. = Amount - Principal ⇒ CI = ₹ 7200−₹ 5000=₹ 2200