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Jasmin Menon
Asked: 2022-11-04T18:42:37+05:30 In:

The simple interest on sum at 6% per annum for 2 years is 180. find the amount for 2 year at same rate of interest when compounded annually.  
1. 1785.40
2. 1585.40
3. 1885.40
4. 1685.40

The simple interest on sum at 6% per annum for 2 years is 180. find the amount for 2 year at same rate of interest when compounded annually.  
1. 1785.40
2. 1585.40
3. 1885.40
4. 1685.40
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1 Answer

  1. Correct Answer – Option 4 : 1685.40

    Given: 

    Simple interest for 2 years at 6% per annum is 180.

    Concept: 

    SI = (P × R × T)/100

    A = P(1 + r/100)n

    Here, N is the number of terms in the year.

    Calculation: 

    The simple interest is 

    ⇒ 180 = (P × 6 × 2)/100

    ⇒ P = 1500 rupee

    Now, When interest is compounded annually, then the amount is 

    ⇒ 1500(1 + 6/100)2 

    ⇒ 1500 × 106/100 × 106/100

    ⇒ 1685.40

    ∴ when interest is compounded annually then the amount is 1685.40 rupee.

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