Question 71

Rs 5000 are invested in a scheme of compound interest. If the rate of interest is 12% per annum, then what is the interest earned (in Rs) in 2 years?

Solution

Principal sum = Rs. 5000

Rate of interest = 12% and time period = 2 years

=> Compound interest = $$P[(1+\frac{R}{100})^T-1]$$

= $$5000[(1+\frac{12}{100})^2-1]$$

= $$5000[(\frac{28}{25})^2-1]$$

= $$5000(\frac{784-625}{625})$$

= $$8\times159=Rs.$$ $$1272$$

=> Ans - (B)

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