Find the CI on ₹5000 at 8% p.a. for 1 year.
Show answer & explanation
Correct answer: A
Explanation
Given:
Principal = ₹5,000
Interest Rate = 8% per annum
Time = 1 year
According to the formula:
Amount = P(1 + r/100)ⁿ
Compound Interest = Amount − Principal
Amount = 5,000(1 + 8/100)¹
= 5,000 × 1.08
= 5,400
Compound Interest = 5,400 − 5,000 = ₹400