Compound interest received on a sum in 5th year is Rs. 1200 (interest is compounded annually). If the rate of interest is 22.5% per annum, then what will be the interest in 6th year?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 1470.
| Understanding/Application |
|
C.I. in 5th years = Rs. 1200 Rate = 22.5% Interest in 6th year, interest being compounded annually = 1200 + (22.5 × 1200/100) |
| Interest in 6th year, interest being compounded annually = 1200 + 270 = Rs. 1470 |