The compound interest on ₹ 2,000 at 5%

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The compound interest on ₹ 2,000 at 5% annum, compounded yearly for 2 years is:

Options:

₹ 315

₹ 425

₹ 205

₹ 500

Correct Answer:

₹ 205

Explanation:

CI at 5% annum, compounded yearly for 2 years is = 10.25% of principal.

Principal = 2000

So, CI = ( 2,000 × 10.25)/100 = 205 rs