The simple interest on a sum of money at 10% per annum for 2 years is Rs8,100. What would be the compound interest ( in Rs) on the same sum for the same period at 15% p.a, when the interest is compounded yearly?
(nearest to Rs 1)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 13,061.
We know that,
S.I .= (P × R × T)/100
here, S.I. = Simple Interest, P = Principal, R = Rate and T = Time
⇒ 8100 = (P × 2 × 10)/100
⇒ 8100 = P/5
⇒ P = 5 × 100
⇒ P = Rs.40500
Now for C.I.
A = P(1+ R/100)T
here, A = Amount, C.I. = Compound Interest
⇒ A = 40500(1 + 15/100)2
⇒ A = 40500(1 + 3/20)2
⇒ A = 40500(23/20)2
⇒ A = 40,500 × (23/20) × (23/20)
⇒ A = 53561.25
C.l. = A - P
⇒ C.I. = 53561.25 - 40500 = Rs. 13,061.25 or Rs. 13,061
Thus, the required compound interest is Rs. 13,061