Compound Interest Practice Test 5

Question : 15 of 40

Marks: +1, -0

The simple interest accrued on a sum of a certain principal is Rs 35,672 in seven years at the rate of 8 per cent per annum. What would be the compound interest accrued on that principal at the rate of 2 per cent per annum in 2 years?

Rs 2,573.48
Rs 2,564.86
Rs 2,753.86
Rs 2,654.48
None of these

Validate

Solution:

SI = Rs 3,5,672; R = 8%; T = 7 years

SI={P×R×T}/100

35672={P×8×7}/100

P={100×35672}/{8×7}

P = Rs 63,700
Now, Amount

=P(1+R/100)^t

=63,700(1+2/100)^2

Amount = Rs 66,273.48
Compound Interest = 66,273.48 - 63,700 = Rs 2,573.48

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