Discussion of Question with ID = 042 under Compound-Interest

This is the discussion forum for this question. If you find any mistakes in the solution, or if you have a better solution, then this is the right place to discuss. A healthy discussion helps all of us, so you are requested to be polite and soft, even if you disagree with the views of others. The question and its current solution has also been given on this page.

Advertisement

Question

How much interest does an amount of Rs. 30000 earn @8% compounded annually for 2 years?

A

Rs. 4992.

B

Rs. 5092.

C

Rs. 4892.

D

Rs. 5192.

Soln.
Ans: a

Amount A = 30000 × $(1 + 8/100)^2$, which equals 30000 × $108/100$ × $108/100$ = 3 × 108 × 108 = Rs. 34992. So interest = A - P = 34992 - 30000 = Rs. 4992.


Comments and Discussion