Compound Interest : Aptitude Test (65 Questions with Explanation)
1.
What would be the compound interest on Rs.7700/- at 15 ¼% per annum for 2 years compounded annually
Answer: Option 'B'
Principal = Rs. 7700/-
time = 2 years
rate = 15 ¼%
Amount = P(1+R/100)n
= 7700 × (1 + 61/(4 × 100)2)
= 7700 × [(1 + 61/400)2]
= 7700 × [(461/400)2)]
= 7700 × 461/400 × 461/400
= 7700 × 1.1525 × 1.1525
= 7700 × 1.32825625
= 10227.573125
C.I = 10227.573125 - 7700 = 2527.57/-
2.
Certain sum becomes 3 times it self at compound interest in 10 years. In how many years it becomes 9 times?
Answer: Option 'D'
P(1 + R/100)10 = 3P
=> P(1 + R/100)10 = 3
Let P(1 + R/100)n = 9P
=> (1 + R/100)n = 9
=> 32 = [(1 + R/100)10]2
=> (1 + R/100)n => (1 + R/100)20
=> n = 20 Years.
3.
An amount at compound interest sums to Rs.17640/- in 2 years and to Rs.18522/- in 3 years at the same rate of interest. Find the rate percentage?
Answer: Option 'A'
The difference of two successive amounts must be the simple interest in 1 year on
the lower amount of money.
S.I = 18522/- - 17640/- = Rs. 882/-
Rate of interest = (882/17640) × (100/1) => 8820/1764 = 5%
Principal = Amount/(1 + R/100)n
= 17640/(1 + 5/100)2
= 17640/(21/20 × 21/20)
= 17640/(1.05 × 1.05)
= 17640/1.1025
= 16000
4.
Certain loan amount was repaid in two annual installments of Rs.1331/- each. If the rate of interest be 10% per annum Compounded annually the sum borrowed was?
Answer: Option 'C'
Principal = (P.W of Rs. 1331/- due 1 year hence) + (P.W of Rs. 1331/- due 2 years hence)
= [1331/(1 + 10/100) + 1331/(1 + 10/100)2]
= [1331/(110/100) + 1331/(110/100 × 110/100)]
= 13310/11 + 133100/121 = 1210 + 1100 = Rs.2310/-
5.
The difference between the compound interest and simple interest on a certain sum of money at 5% per annum for 2 years is 45. Then the original sum is?
Answer: Option 'C'
For 2 years = (1002D)/R2
= (1002 × 45)/(5 × 5) = (10000 × 45)/25 = Rs.18000/-
6.
The Compound interest in a particular amount for the first year at 8% is Rs.50/-.The compound interest for 2 years at the same rate on the amount will be?
Answer: Option 'B'
Rs.104/-
7.
The present worth of Rs.9826/- due 2 years at 6 ¼% per annum compound interest is:
Answer: Option 'B'
Rs.8704/-
8.
The Compound interest of Rs.10240/- at 6 ¼% per annum for 2 years 292days is:
Answer: Option 'A'
Rs.1898/-
9.
A person borrows a certain amount from his friend at the rate of 15% per annum compound interest, interest being compounded annually and agrees to return it in 2 equal yearly installments of Rs.529/- each. Find the amount borrow.
Answer: Option 'C'
Rs.860/-
10.
Hari lended a sum of Rs.8000 for 20% per annum at compound interest then the sum of the amount will be Rs.13824 is obtained. After how many years he will get that amount?
Answer: Option 'D'
Let Principal = P, Rate = R% per annum, Time = n years
When interest is compounded annually, total amount can be calculated by using the formula
Compound Amount = P ( 1 + R / 100)n
Given that, P = Rs.8000, R = 20% per annum
Compound Amount = Rs. 13824
We have to find the time period during which the amount will be Rs.13824
=> Rs.13824 = 8000 x (1 + 20/100)n
=> (13824 /8000) = (120 / 100)n
=> (24 / 20)3 = (12 / 10)n
=> (12 /10)3 = (12 /10 )n
Therefore, n = 3.
Hence the required time period is 3 years.
11.
What will be the amount if sum of Rs.10,00,000 is invested at compound interest for 3 years with rate of interest 11%, 12% and 13% respectively?
Answer: Option 'A'
Given
Here, P = Rs.10,00,000, R1 = 11 , R2 = 12, R3 = 13.
Each rate of interest is calculated for one year.
Hence, N = 1 year.
Amount after 3 years,
= P(1 + R1/100) (1 + R2/100) (1 + R3/100)
= 10,00,000 × (1 + 11/100) × (1 + 12/100) × (1 + 13/100)
= 10,00,000 × (111/100) × (112/100) × (113/100)
= 111 x 112 x 113
= 14,04,816
Hence the total amount after 3 years is Rs.14,04,816
12.
Akarsh left a will of Rs. 16,400 for his two sons whose age are 17 and 18 years.They must get equal amounts when they are 20 years at 5% compound interest. Find the present share of the younger son.
Answer: Option 'B'
Given, total amount (to be shared by two sons at the age of 20 on Compound interest) = Rs. 16,400
Let the Present share (Principal amount) for 17 year old son = "X"
Then the Present share (Principal amount) for 18 year old son = (16,400 - X)
To attain 20 years of age,
=> 17 year old son takes 3 years (N = 3 years on Compound interest)
=> 18 year old son takes 2 years (N = 2 years on Compound interest)
Given, Rate of interest (R) = 5%
Given that, at the age of 20, two sons get equal amount
=> Compound Amount of 17 year old son = Compound Amount of 18 year old son
W.K.T, Formula for Compound Amount = P [1 + (R/100)]^N
=> X (1 + 5/100)^3 = (16,400 - X) (1 + 5/100)^2
=> X (1 + 5/100) = (16,400 - X)
=> (105/100) X = (16,400 - X)
=> [(105/100) X] + X = 16,400
=> 205 X = 16,400 * 100
=> X = 16,40,000 / 205
=> X = 8,000
Therefore, Present share for 17 year old son = Rs. 8,000
13.
A sum of money is invested at 10% per annum compounding annually for 2 years. If the interest received is Rs. 210, find the principal.
Answer: Option 'B'
Given, r = 10%
n = 2 years
Compound interest, C.I = Rs. 210
Compound Interest = Amount – Principal
=> C.I = P {[1 + (r/100)]n - 1}
=> 210 = P {[1 + (10/100)]2 - 1}
=> 210 = P {[1 + (1/10)]2 - 1}
=> 210 = P {[(10 + 1)/10]2 - 1}
=> 210 = P {[11/10]^2 - 1}
=> 210 = P {[121 / 100] – 1}
=> 210 = P {(121 – 100) / 100}
=> 210 = P {21 / 100}
=> P = (210 × 100) / 21
=> P = 1000 Rs.
Thus, Principal = Rs. 1000
14.
Rs. 10000 is borrowed at compound interest at the rate of 4 % annum. What will be the amount to be paid after 2 years?
Answer: Option 'A'
Principal : P = 10000 Rs.
Rate of Interest : r = 4 %
Number of years : n = 2
Amount = P x (1 + r/100)n
Amount = 10000 x (1+4/100)2
=10000 x (1+1/25)2
=10000 x (26/25) x (26/25) =10816
15.
What would be the compound interest accrued on an amount of 5000 Rs. at the end of 2 years at the rate of 9 % per annum?
Answer: Option 'A'
Given principal = 5000
No. of years = 2
Rate of interest = 9
Amount = P x (1+r/100)n,
We get Amount = 5000 x (1+9/100)2 = 5000 x (109/100) x (109/100) = 5940.5
Compound Interest, C. I = Amount - Principal = 5940.5 - 5000 = 940.5
16.
The difference between the simple interest on a certain sum at the rate of 10% p.a. for 2 years and compound interest which is compounded every 6 months is Rs.124.05 .What is the principal sum?
Answer: Option 'B'
Let the sum be P
Compound Interest on P at 10% for 2 years when interest is compounded half-yearly
=P(1+ (R / 2)100) 2T−P= P(1+(10 / 2)100) 2× 2− P
=P(1+120)4−P=P(21 / 20) 4− P
Simple Interest on P at 10% for 2 years
=P × R × T /100
=P×10×2100
= P / 5
Then P[(1+5 / 100)4-1] - P x 10 x 2/100 = 124.05
⇒ P[(21/20)4 - 1 - 1/4] = 124.05
⇒ P[(194481/160000) - (6/5)] = 12405 /100
⇒ P[194481-192000 / 160000] = 12405 /100
⇒ P = [(12405/100) x (160000/2481)]
= 124.05 x 64.490
= 7999.9845
= 8000.
17.
The difference between compound interest and simple interest compounded annually on a certain sum of money for 2 years at 4% p.a. is Re.1 The sum (in Rs) is:
Answer: Option 'A'
625
18.
There is 60% increase in an amount in 6 years at simple interest. What will be the compound interest of Rs.12,000 after 3 years at the same rate?
Answer: Option 'A'
Let the Principal be, P = Rs. 100
Given, S.I = 60% of 100 = Rs. 60, n = 6 years
Then, Rate of Interest, r = (S.I × 100 )/ (p × n)
=> r = (60 × 100) / (100 × 6)
=> r = 10 % p.a
Now, P = Rs. 12,000, n = 3 years, r = 10% p.a
C.I = P {[1 + (r/100)]n - 1}
= 12,000 × {[1 + (10/100)]3-1}
= 12,000 × [(11/10)3-1]
= 12,000 × [(1331/1000) - 1]
= 12,000 × (331/1000)
= 12 × 331
= 3972
Thus, Compound Interest = Rs. 3972
19.
The compound interest on a certain sum for 2 years at 10% p.a. is Rs.525.The simple interest on the same sum for double the time at the half the rate percent per annum is:
Answer: Option 'B'
Given, n = 2 years
r = 10 %
Compound interest (C.I) = Rs. 525
Compound interest (C.I) = P {[1 + (r/100)]n – 1}
=> P {[1 + (10/100)]2– 1} = 525
=> P {[1 + (1/10)]2 – 1} = 525
=> P {[11/10]2 – 1} = 525
=> P {[121/100] – 1} = 525
=> 21 × P / 100 = 525
=> P = 2500
Now for Simple Interest, S.I = p × n × r / 100
P = Rs. 2500
n = 4 years
r = 5%
S.I = (2500 × 4 × 5) / 100
=> S.I = 500 Rs.
20.
What will be compounded interest on a sum of Rs.25,000 after 3 years at the rate of 12 p.c.p.a.?
Answer: Option 'B'
Rs.10123.20
21.
What would be the compound interest accrued on an amount of 6250 Rs. at the end of 2 years at the rate of 12 % per annum?
Answer: Option 'D'
1590
22.
What would be the compound interest accrued on an amount of 10000 Rs. at the end of 2 years at the rate of 4 % per annum ?
Answer: Option 'A'
Given principal = 10000
No. of years = 2
Rate of interest = 4
Amount = P x (1+r/100)n
we get Amount = 10000 x (1+4/100)2 = 10816
C.I = Amount - Principal = 10816 - 10000 = 816
23.
What would be the compound interest accrued on an amount of 6250 Rs. at the end of 2 years at the rate of 8 % per annum?
Answer: Option 'B'
Given principal = 6250
No. of years = 2
Rate of interest = 8
Amount = P x (1+r/100)n,
We get Amount = 6250 x (1+8/100)2 = 7290
C.I = Amount - Principal = 7290 - 6250 = 1040
24.
What would be the compound interest accrued on an amount of 6500 Rs. at the end of 2 years at the rate of 15 % per annum?
Answer: Option 'C'
Given principal = 6500
No. of years = 2
Rate of interest = 15
Amount = P x (1+r/100)n,
we get Amount = 6500 x (1+15/100)2 = 8596.25
C.I = Amount - Principal = 8596.25 - 6500 = 2096.25
25.
What would be the compound interest accrued on an amount of 5000 Rs. at the end of 2 years at the rate of 9 % per annum?
Answer: Option 'B'
Given
Principal = 5000 No. of years = 2 Rate of interest = 9
Amount = P x (1+r/100)n,
we get Amount
= 5000 x (1+9/100)2
= 5940.5
C.I = Amount - Principal
= 5940.5 - 5000
= 940.5.
26.
What would be the compound interest accrued on an amount of 12500 Rs. at the end of 3 years at the rate of 10 % per annum?
Answer: Option 'A'
Given principal = 12500
No. of years = 3
Rate of interest = 10
Amount = P x (1+r/100)n,
We get Amount = 12500 x (1+10/100)3 = 16637.5
C.I = Amount - Principal = 16637.5 - 12500 = 4137.5
27.
What would be the compound interest accrued on an amount of 14000 Rs. at the end of 3 years at the rate of 5 % per annum?
Answer: Option 'B'
Given
Principal = 14000 No. of years = 3 Rate of interest = 5
Amount = P x (1+r/100)n,
we get Amount = 14000 x (1+5/100)3 = 16206.75
C.I = Amount - Principal
= 16206.75 - 14000 = 2206.75.
28.
John invested an amount of Rs. 20000 for 2 years at compound interest at the rate of 6 % per annum. Find the amount he receives at the end of 2 years.
Answer: Option 'A'
Given
Principal : P = 20000 Rs. Rate of Interest : r = 6 % Number of years : n = 2
Amount = P x (1 + r/100)n
Amount = 20000 x (1+6/100)2
= 20000 x (1+3/50)2
= 20000 x (53/50) x (53/50)
= 22472.
29.
What would be the compound interest accrued on an amount of 5000 Rs. at the end of 2 years at the rate of 16 % per annum?
Answer: Option 'A'
Given
principal = 5000
No. of years = 2
Rate of interest = 16
Amount = P x (1+r/100)n
we get Amount = 5000 x (1+16/100)2
= 5000 x (116 / 100)2
= 5000 x (116 / 100 ) x (116 / 100)
= 58 x 116
Amount = 6728
Compound interest = Amount - Principal
= 6728 - 5000
= 1728
30.
What would be the compound interest accrued on an amount of 14000 Rs. at the end of 3 years at the rate of 5 % per annum?
Answer: Option 'B'
Given
principal = 14000
No. of years = 3
Rate of interest = 5
Amount = P x (1+r/100)n
we get Amount = 14000 x (1+5/100)3
= 14000 x (105 / 100)3
= 14000 x (21 / 20)3
= 14000 x (9261 / 8000)
= 64827 / 4
= 16206.75
compound interest = Amount - principal
=16206.75 -14000
=2206.75
31.
John invested an amount of Rs. 20000 for 2 years at compound interest at the rate of 6 % per annum. Find the amount he receives at the end of 2 years.
Answer: Option 'B'
Principal : P = 20000 Rs.
Rate of Interest : r = 6 %
Number of years : n = 2
Amount = P x (1 + r/100)n
= 20000 x (1+6/100)2
= 20000 x (1+3/50)2
= 20000 x (53/50) x (53/50)
= 22472
Thus, Amount that Johnreceives at the end of 2 years = Rs.22472
32.
Rs. 10000 is borrowed at compound interest at the rate of 4 % per annum. What will be the amount to be paid after 2 years?
Answer: Option 'A'
Principal : P = 10000 Rs.
Rate of Interest : r = 4 %
Number of years : n = 2
Amount = P x (1 + r/100)n
= 10000 x (1+4/100)2
=10000 x (1+1/25)2
=10000 x (26/25) x (26/25)
=10816
Thus, Amount to be paid after 2 years = Rs.10816
33.
What would be the compound interest accrued on an amount of 2500 Rs. at the end of 2 years at the rate of 10 % per annum?
Answer: Option 'A'
Given principal = 2500
No. of years = 2
Rate of interest = 10
Amount = P x (1+r/100)n,
we get Amount = 2500 x (1+10/100)2 Ans : 3025
34.
What would be the compound interest accrued on an amount of 4500 Rs. at the end of 2 years at the rate of 10 % per annum ?
Answer: Option 'B'
Given principal = 4500
No. of years = 2
Rate of interest = 10
Amount = P x (1+r/100)n,
We get Amount = 4500 x (1+10/100)2
Ans : 5445
35.
What would be the compound interest accrued on an amount of 11500 Rs. at the end of 2 years at the rate of 10 % per annum ?
Answer: Option 'B'
Given
Principal = 11500 No. of years = 2 Rate of interest = 10
Amount = P x (1+r/100)n,
we get Amount = 11500 x (1+10/100)2
= 11500 x ( 110 / 100 )2
= 115 x 11 x 11
= 115 x 121
Ans : 13915
36.
What would be the compound interest accrued on an amount of 5000 Rs. at the end of 2 years at the rate of 16 % per annum?
Answer: Option 'A'
Given principal = 5000
No. of years = 2
Rate of interest = 16
Amount = P x (1+r/100)n,
= 5000 x (1+16/100)2
= 5000 x (1 + 4/25)2
= 5000 x (29 / 25)2
= 5000 x (841 / 625)
=6728
=>Amount = Rs.6728
Compound Interest = Amount - Principal
= 6728 - 5000
=1728
Thus,Compound Interest = Rs.1728
37.
What would be the compound interest accrued on an amount of 8000 Rs. at the end of 2 years at the rate of 5 % per annum?
Answer: Option 'A'
Given principal = 8000.
No. of years = 2
Rate of interest = 5.
Amount = P x (1+r/100)n,
we get Amount = 8000 x (1+5/100)2 .
Ans : 8820
38.
The least number of complete years in which a sum of money put out at 20% compounded interest will be more than doubled is:
Answer: Option 'B'
Given,
R = 20%
Compound interest (C.I) = P [1 + (r/100)]n
=> P [1 + (20/100)]n > 2P
=> (120/100)n > 2
=> (6/5)n > 2
=> {(6/5) × (6/5) × (6/5) × (6/5)} > 2
=> (6/5)4 = 2.0736 > 2
So, n = 4 years.
39.
A sum of money is borrowed and paid back in two annual instalments of Rs.882 each allowing 5% compound interest .The sum borrowed was:
Answer: Option 'B'
Given
The sum borrowed
Present Worth of Rs.882 due 1 year + Present Worth of Rs.882 due 2 year
=> ( 882 ) / 1 + ( 5 / 100)1 + ( 882) / 1 + ( 5 / 100)1
=> (882 / 105 × 100 )1 + (882 / 105 × 100 )1
=> ( 882 /( 21 / 20 ) + ( 882 / (21 / 20)1
=> ( 882 × 20) / (21) + ( 882 × 20 × 20 / 21 × 21 )
=> 42 × 20 + 42 × 20 × 20 / 21
=> 840 + 2 × 20 × 20
=> 840 + 800
=> 1640
The sum borrowed = Rs.1640
40.
The population of a town is 196000. It increases by 7% in the 1st year and decreases by 5% in the 2nd year. What is the population of the town at the end of 2 years?
Answer: Option 'A'
Initial population is 196000
In First Year, population increasesby 7%
New population
= (107/100) x 196000
= 107 × 196000 / 100
= 107 × 1960
= 209720
Population after 1 year = 209720
In second year, Population decreases by 5%,
New population
= (100 - 5)/100 x 209720
= (95/100) x 209720
= 19 * 10486
= 199234
Population after 2 years will be 199234.
41.
What would be the compound interest accrued on an amount of 2500 Rs. at the end of 2 years at the rate of 10 % per annum?
Answer: Option 'A'
Given principal = 2500
No. of years = 2
Rate of interest = 10
Amount = P x (1+r/100)n,
=> Amount = 2500 x (1+10/100)2
= 2500 (11/ 10)2
= 2500 (121/ 100)
= 25 × 121
= 3025
So, Compound Amount = 3025
Compound Interest = Compound Amount - Principal
=> C.I = 3025 - 2500
=> C.I = 525 Rs.
42.
What would be the compound interest accrued on an amount of 6500 Rs. at the end of 2 years at the rate of 15 % per annum ?
Answer: Option 'A'
Given principal = 6500
No. of years = 2
Rate of interest = 15
Amount = P x (1+r/100)n,
we get Amount = 6500 x (1+15/100)2
Ans : 8596.25
43.
What would be the compound interest accrued on an amount of 2500 Rs. at the end of 3 years at the rate of 10 % per annum?
Answer: Option 'A'
Given principal = 2500
No. of years = 3
Rate of interest (r) = 10
Amount = P x (1+r/100)n
=>Amount = 2500 x (1+10/100)3
= 2500 x (1+1/10)3
= 2500 x (11/10)3
= 2500 x (1331 / 1000)
=3327.5
=>Amount = Rs.3327.5
Compound interest = Amount - Principal
= 3327.5 - 2500
=827.5
Thus, theCompound interest = Rs.827.5
44.
What would be the compound interest accrued on an amount of 6250 Rs. at the end of 2 years at the rate of 8 % per annum?
Answer: Option 'B'
Given, principal = 6250
No. of years = 2
Rate of interest = 8
Amount = P x (1+r/100)n,
=> Amount = 6250 x (1+8/100)2
= 6250 x (108 / 100)2
= 6250 x (108 / 100) x (108 / 100)
= 7290
Compound Interest = Amount - Principal
= 7290 - 6250
= 1040
Therefore, Compound Interest = Rs. 1040
45.
Hari lended a sum of Rs.8000 for 20% per annum at compound interest then the sum of the amount will be Rs.13824 is obtained. After how many years he will get that amount?
Answer: Option 'C'
Let Principal = P, Rate = R% per annum, Time = n years
When interest is compounded annually, total amount can be calculated by using the formula
Compound Amount = P ( 1 + R / 100)n
Given that, P = Rs.8000, R = 20% per annum
Compound Amount = Rs. 13824
We have to find the time period during which the amount will be Rs.13824
=> Rs.13824 = 8000 x (1 + 20/100)n
=> (13824 /8000) = (120 / 100)n
=> (24 / 20)3 = (12 / 10)n
=> (12 /10)3 = (12 /10 )n
Therefore, n = 3.
Hence the required time period is 3 years.
46.
Akarsh left a will of Rs. 16,400 for his two sons whose age are 17 and 18 years.They must get equal amounts when they are 20 years at 5% compound interest. Find the present share of the younger son.
Answer: Option 'B'
Given, total amount (to be shared by two sons at the age of 20 on Compound interest) = Rs. 16,400
Let the Present share (Principal amount) for 17 year old son = "X"
Then the Present share (Principal amount) for 18 year old son = (16,400 - X)
To attain 20 years of age,
=> 17 year old son takes 3 years (N = 3 years on Compound interest)
=> 18 year old son takes 2 years (N = 2 years on Compound interest)
Given, Rate of interest (R) = 5%
Given that, at the age of 20, two sons get equal amount
=> Compound Amount of 17 year old son = Compound Amount of 18 year old son
W.K.T, Formula for Compound Amount = P [1 + (R/100)]N
=> X (1 + 5/100)3 = (16,400 - X) (1 + 5/100)2
=> X (1 + 5/100) = (16,400 - X)
=> (105/100) X = (16,400 - X)
=> [(105/100) X] + X = 16,400
=> 205 X = 16,400 × 100
=> X = 16,40,000 / 205
=> X = 8,000
Therefore, Present share for 17 year old son = Rs. 8,000
47.
What will be the amount if sum of Rs.10,00,000 is invested at compound interest for 3 years with rate of interest 11%, 12% and 13% respectively?
Answer: Option 'A'
Given
Here, P = Rs.10,00,000, R1 = 11 , R2 = 12, R3 = 13.
Each rate of interest is calculated for one year.
Hence, N = 1 year.
Amount after 3 years,
= P(1 + R1/100) (1 + R2/100) (1 + R3/100)
= 10,00,000 × (1 + 11/100) × (1 + 12/100) × (1 + 13/100)
= 10,00,000 × (111/100) × (112/100) × (113/100)
= 111 x 112 x 113
= 14,04,816
Hence the total amount after 3 years is Rs.14,04,816
48.
A sum of money is invested at 10% per annum compounding annually for 2 years. If the interest received is Rs. 210, find the principal.
Answer: Option 'D'
Given, r = 10%
n = 2 years
Compound interest, C.I = Rs. 210
Compound Interest = Amount – Principal
=> C.I = P {[1 + (r/100)]n - 1}
=> 210 = P {[1 + (10/100)]2 - 1}
=> 210 = P {[1 + (1/10)]2 - 1}
=> 210 = P {[(10 + 1)/10]2 - 1}
=> 210 = P {[11/10]2 - 1}
=> 210 = P {[121 / 100] – 1}
=> 210 = P {(121 – 100) / 100}
=> 210 = P {21 / 100}
=> P = (210 × 100) / 21
=> P = 1000 Rs.
Thus, Principal = Rs. 1000
49.
What would be the compound interest accrued on an amount of 12500 Rs. at the end of 3 years at the rate of 10 % per annum?
Answer: Option 'B'
Given principal = 12500
No. of years = 3
Rate of interest = 10
Amount = P x (1+r/100)n,
= 12500 x (1+10/100)3
= 12500 x (11/10)3
= 12500 x (11/10)x (11/10)x (11/10)
= 16637.5
Compound Interest, C. I = Amount - Principal = 16637.5 - 12500 = 4137.5
50.
John invested an amount of Rs. 20000 for 2 years at compound interest at the rate of 6 % per annum. Find the amount he receives at the end of 2 years.
Answer: Option 'A'
Given
Principal : P = 20000 Rs.
Rate of Interest : r = 6 %
Number of years : n = 2
Amount = P x (1 + r/100)n
=> Amount = 20000 x (1+6/100)2
= 20000 x (1+3/50)2
= 20000 x (53/50) x (53/50)
= 22472
Therefore, Amount received by John at the end of two years = Rs. 22472
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