What Will Be Compound Interest?

Vijay obtains a loan of Rs. 64000 against his fixed deposits. If the rate of interest be 2.5 paise per rupee per annum, what is the compound interest payable after 3 years.

  1. Rs. 4921
  2. Rs.3925
  3. Rs5052
  4. Rs.4573
kishan Default Asked on 26th July 2015 in Maths.
Add Comment
1 Answer(s)

Answer: (1) Rs.4921
Explanation:-
Given-
P = Rs.6400, R = 2.5 paisa per rupee per annum
or = 0.025 rupee per rupee per annum.
= 0.025 x 100 per hundred per annum
= 0.025 x 100 per cent per annum
= 2.5 per cent per annum.
Time = 3 years
Formula-
Compound Interest = P [(1 + R/100)t – 1]
Where, P = principal, R = rate, t = time.
Then, Compound Interest = 64,000 [(1 + 2.5/100)3 – 1]
= 64,000 [(1 + 0.025)3 – 1]
= 64,000 [(1.025)3 – 1]
= 64,000 [1.0768 – 1]
= 64,000 x 0.0768
= 4921
Hence, the answer is (1) Rs.4921.

Anurag Mishra Professor Answered on 27th July 2015.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.