The simple interest on a sum deposited at 10% p.a. for 4 years is ₹20,000. What will be the compound interest on the same sum at half of the above rate of interest for 2 years, interest compounded yearly? |
₹5,125 ₹5,010 ₹5,015 ₹5,020 |
₹5,125 |
The formula that we used here is :- Simple interest = \(\frac{P × R × T}{100}\) 20000 = \(\frac{P × 10 × 4}{100}\) P = Rs. 50000 Now, New rate = \(\frac{10}{2}\)% = 5% C.I = P(1+$\frac{R}{100})^t$– P = 50000 [ 1 + \(\frac{5}{100}\) ]² - 50000 = 50000 × \(\frac{21}{20}\) × \(\frac{21}{20}\) - 50000 = 55125 - 50000 = 5125 |