Rs. 2100 is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.
A. Rs. 2300
B. Rs. 2315.25
C. Rs. 2310
D. Rs. 2320
E. None of these
Answer: Option B
Solution(By Examveda Team)
$$\eqalign{ & {\text{We}}\,{\text{can}}\,{\text{use}}\,{\text{formula}}\,{\text{of}}\,{\text{compound}}\,{\text{interest}} \cr & A = P \times {\left[ {1 + \left( {\frac{r}{{100}}} \right)} \right]^n} \cr & A = 2100 \times {\left[ {1 + \left( {\frac{5}{{100}}} \right)} \right]^2} \cr & A = 2100 \times {\left[ {\frac{{105}}{{100}}} \right]^2} \cr & A = \frac{{ {2100 \times 11025} }}{{10000}} \cr & {\text{Hence,}}\,{\text{Amount}}\,A = Rs.\,2315.25 \cr} $$Join The Discussion
Comments ( 2 )
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Rs. 1200 is lent out at 5% per annum simple interest for 3 years. Find the amount after 3 years.
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E. Rs. 1240
Interest obtained on a sum of Rs. 5000 for 3 years is Rs. 1500. Find the rate percent.
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E. 12%
Rs. 2100 is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.
A. Rs. 2300
B. Rs. 2315.25
C. Rs. 2310
D. Rs. 2320
E. None of these
How it's 105
We can use formula of compound interest;
A = P*[1+ (r/100)]n
A = 2100*[1+(5/100)]2
A = 2100*[105/100]2
A = (2100*11025)/10000
Hence, Amount, A = Rs. 2315.25.