What Amount will be Receive? If

What total amount will Rani get in 2 year if she invests Rs. 5000 to obtain compound interest at the rate of 5% per annum?

  1. Rs. 5511.50
  2. Rs. 5312.50
  3. Rs. 5542.50
  4. Rs. 5512.50
vijay Professor Asked on 2nd August 2015 in Maths.
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1 Answer(s)

Answer: (4) Rs.5512.50
Explanation:-
Given-
Principal = Rs.5000, Rate = 5 %, Time = 2 years
Formula-
Compound Interest = P [(1 + R/100)t – 1]
Where, P = principal, R = rate, t = time.
Then,  Amount = 5000(1 + 5/100)^2
= 5000 (1 + 1/20)^2
= 5000 (21/20)^2
= 5000 x 21 x 21 /20 x 20
= 25 x 21 x 21 /2
= 11025/2
= Rs.5512.50
Hence, the answer is (4) Rs.5512.50.

Anurag Mishra Professor Answered on 2nd August 2015.
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