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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