What amount will be received on a sum 0f Rs. 1750 in 2 1/2 Yr, if the interest is compounded at the rate of 8% pa?

A) RS.2125

B) RS.2122.85

C) RS.2100

D) RS.2200

Correct Answer:
B) RS.2122.85

Description for Correct answer:

Given, P = RS. 1750,R = 8%, n = 2 and \( \Large \frac{a}{b} \) = \( \Large \frac{1}{2} \)

According to the formula,

Amount = \( \Large P \left(1+\frac{R}{100}\right)^{n}\times \left(1+\frac{\frac{a}{b}\times R}{100}\right) \)

= \( \Large 1750 \left(1+\frac{8}{100}\right)^{2} \) \( \Large \left(1+\frac{1/2\times 8}{100}\right) \)

= 1750\( \Large \left(\frac{27}{25}\right)^{2}\times 26/25 \)=\( \Large 1750\times 27/25\times 27/25\times 26/25 \)

= RS.2122.848=RS.2122.85

Part of solved Compound interest questions and answers : >> Aptitude >> Compound interest


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