If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50

If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50. What will be the compound interest on the same sum at the same rate for the same period?
(a) Rs.51.25
(b) Rs.52.00
(c) Rs.54.25
(d) Rs.60.00

Anurag Mishra Professor Asked on 29th February 2016 in Maths.
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  • 1 Answer(s)

    Answer: (a) Rs. 51.25

    Solution:-
    According to the question,
    Principal = (50 x 100/2 x 5)
    = Rs. 500

    Amount = [500 x (1 + 5/100)^2]
    = 500 x 21 x 21 /20 x 20
    = Rs. 551.25

    Then, compound Interest = 551.25 – 500
    = Rs. 51.25.

    Hence, the correct answer is option (a) Rs. 51.25.

    Anurag Mishra Professor Answered on 4th March 2016.
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