What is the amount (in ₹ ) on a sum of ₹5,120 at 15% per annum for 2 years, if the interest is compounded 10- monthly?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 7,290.
Rate of interest (R) = (15 × 10/12) = 12.5%
Time (N) = (2.5 × 12/10) = 3
Amount = P(1 + R/100)N
⇒ 5120 (1 + 12.5/100)3
⇒ 5120 (112.5/100)3
⇒ 5120 (1.125)3
⇒ Rs. 7290