The simple interest on a sum of money at 10% per annum for 2 years is ₹8,100. What would be the compound interest (in ₹)on the same sum for the same period at 15% p.a , when the interest is compounded yearly? (nearly to 1)
Answer & explanation
Correct answer: option 4
Simple interest of 2 years = 10% + 10% = 20%
ATQ,
20% = 8100
1% = 405
Principal = 100% = 100 × 405 = 40500
Now, Compound interest of 2 years = 15 + 15 + \(\frac{15×15}{100}\) = 32.25%
As , 1% = 405
Compound Interest = 32.25% = 32.25 × 405 = 13061.25
= 13061 ( nearest 1)