Practicing Success
If the rate of interest is 20% per annum, compounded yearly and the interest on a certain sum in the second year is ₹250, then what will be the interest on the same sum in the fifth year? |
₹518 ₹400 ₹360 ₹432 |
₹432 |
Compound interest of 2nd year = 250 Rate of interest = 20% Compound interest of 3rd year = 250 × \(\frac{6}{5}\) = 300 Compound interest of 4th year = 300 × \(\frac{6}{5}\) = 360 Compound interest of 5th year = 360 × \(\frac{6}{5}\) = 432
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