The compound interest on Rs.36000 lent at 10 % per annum for 2.5 years, if the interest is compound annually, isa)Rs.7650b)Rs.9000c)Rs.9738d)Rs.11916Correct answer is option 'C'. Can you explain this answer?

Question

Answer

Given:
Principal amount (P) = Rs. 36000
Rate of interest (R) = 10% per annum
Time period (T) = 2.5 years

To find:
Compound interest

Solution:
The formula to calculate compound interest is:
A = P(1 + R/100)^T

Where,
A = Amount after time period T

Calculating the amount:
Substituting the given values in the formula:
A = 36000(1 + 10/100)^(2.5)

Calculating the amount by simplifying:
A = 36000(1.1)^2.5
A = 36000(1.331)

A ≈ 47916

Calculating the compound interest:
Compound Interest (CI) = A - P
CI = 47916 - 36000
CI = 11916

Hence, the compound interest on Rs. 36000 lent at 10% per annum for 2.5 years, if the interest is compounded annually, is Rs. 11916. Therefore, the correct option is (d) Rs. 11916.

Similar Teaching Doubts

The difference between compound interest and simple interest at the same rate on Rs 10,000 for 2 years is Rs 1296. The rate of interest per annum is

If a sum is lent at 5% compound interest per annum for 2 yr. What is the ratio of the amount to the principal?

A person lent Rs. 5,000 partly at the rate of 4 percent and partly at the rate of 5 percent per annum, at simple interest for purchased a wristwatch. The total interest after 2 years is Rs. 440. The sum of money lent at each of the above rates is to be divided in the ratio

The simple and compound interest that can be earned in two years at the same rate is Rs 4000 and Rs 4180 respectively. What is the rate (percent per annum) of interest?

A person lent certain sum of money at 5% per annum simple interest and in 15 years the interest amounted to Rs 500 less than the sum lent. What was the sum lent?

Top Courses for Teaching

Suggested Free Tests

Related Content

Schools

Competitive Examinations

Quick Access Links

Technical Exams