Q1. The simple interest accrued on a sum of certain principal in 8 years at the rate of 13% per year is ₹6500. What would be the compound interest accrued on that principal at the rate of 8% per year in 2 years?
A ₹1040
B ₹1020
C ₹1060
D ₹1200
EXPLANATION
Answer: A
It is given P x 8 x 19 / 100 = 6500
P = Rs 6250
Amount after 2 years = 6250 (1 + 8 / 100)2 = 6250 x 108/100 x 108/100 = 7290
Compound interest = 7290 – 6250 = Rs 1040
The answer is option A.
Leave a Reply