Discussion of Question with ID = 082 under Compound-Interest

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Question

How much interest does an amount of Rs. 30000 earn @9% compounded annually for 2 years?

A

Rs. 5643.

B

Rs. 5743.

C

Rs. 5543.

D

Rs. 5843.

Soln.
Ans: a

Amount A = 30000 × $(1 + 9/100)^2$, which equals 30000 × $109/100$ × $109/100$ = 3 × 109 × 109 = Rs. 35643. So interest = A - P = 35643 - 30000 = Rs. 5643.


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