What would be the interest accrued in two years on Rs. 300 if the sum is invested at 10% interest compounded annually?
1. Rs. 60.50
2. Rs. 60
3. Rs. 61.50
4. Rs. 63
1. Rs. 60.50
2. Rs. 60
3. Rs. 61.50
4. Rs. 63
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Correct Answer – Option 4 : Rs. 63
Given:
Principal = Rs. 300
Rate of interest = 10%
time = 2 years
Formula used:
Compound interest = Principal[1 + (rate/100)]time – Principal
Calculation:
Compound Interest for 2 years
⇒ 300[1 + (10/100)]2 – 300
⇒ 363 – 300
⇒ 63
∴ The compound interest for 2 years is Rs. 63.