Target Exam

CUET

Subject

General Aptitude Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

Find the compound interest on ₹42000 for $1\frac{1}{2}$ years at 10% p.a. compounded annually.

Options:

₹5601

₹5610

₹6510

₹6620.25

Correct Answer:

₹6510

Explanation:

Principal = 42000

Rate = 10% p.a. compounding annually

Time = 1.5 years

Amount for 1 year = P(1 + r/100)^T = 42000 (1 + 10/100)^1 = 42000 (1.1) = 46200

simple interest interest for half year = 46200*0.5*10/100 = 2310

Total Interest = 4200+2310 = 6510

The correct answer is Option (3) → ₹6510