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.
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  • 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.
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