A sum of Rs. 10000 amounts to Rs. 11664 in 2 years, at a certain rate percent per annum, when the interest is compounded annually. What will be the interest on the same sum for 5 2/5 years at the same rate?
Show answer & explanation
Correct answer: C
Explanation
Correct Answer is option 3 i.e. Rs. 4320
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Concept |
Understanding |
Application |
Fair calculation |
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For CI: A = P[1 + r/100]t |
Given A = 11664, P = 10000 t = 2 we can get rate of interest with this data |
11664 = 10000[1 + r/100]2 [1 + r/100]2 = 1.1664 1 + r/100 = 1.08 r = 8% Now, SI for 27/5 years: SI = [10000 × 8 × 27/5]/100 = 4320 |
(1.08)2 = 1.1664 [10000 × 8 × 27/5]/100 = 100 × 8 × 27/5 = 160 × 27 = 4320 |