The interest (in Rs.) is to be paid on a sum of Rs. 30000 at 15% p.a. after years, if interest compounded yearly, is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 13642.50.
A = P(1 + r/100)n × (1 + rm/100)
A = 30000(1 + 15/100)2 × (1 + (15 × 2/3)/100)
A = 39675 × 1.1
A = 43642.5
Interest earned = (43642.5 - 30000) = 13642.5.