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Rs. 2100 is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.
- ARs. 2300
- BRs. 2315.25
- CRs. 2310
- DRs. 2320
Correct answer: B
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Rs. 2315.25
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Solution:
Given:
A = P × [ 1 + (r/100) ]^n where,
A is the amount in rupees,
P is the principal in rupees,
r is the interest in percentage,
n is time in years.
P = Rs.2100, r = 5% , n = 2 years, A = ?
So,
A = 2100 × [ 1 + (5/100) ]²
A = 2100 × [ 1 + (0.05) ]²
A = 2100 × [ 1.05 ]²
A = 2100 × 1.1025
A = 2,315.25
So, the correct option is B). Rs. 2315.25
Given:
A = P × [ 1 + (r/100) ]^n where,
A is the amount in rupees,
P is the principal in rupees,
r is the interest in percentage,
n is time in years.
P = Rs.2100, r = 5% , n = 2 years, A = ?
So,
A = 2100 × [ 1 + (5/100) ]²
A = 2100 × [ 1 + (0.05) ]²
A = 2100 × [ 1.05 ]²
A = 2100 × 1.1025
A = 2,315.25
So, the correct option is B). Rs. 2315.25