# 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?

- Rs. 5511.50
- Rs. 5312.50
- Rs. 5542.50
- Rs. 5512.50

**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.