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The simple interest accrued on an amount of Rs. 22,500 at the end of four years is Rs.   10,800. What would be the compound interest accrued on the same amount at the same rate at the end of two years? 
  • a)
    Rs.14,908
  • b)
    Rs.5,724
  • c)
    Rs.26,234
  • d)
    Rs.8,568
  • e)
    None of these
Correct answer is option 'B'. Can you explain this answer?
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Calculation of Compound Interest

- The formula to calculate compound interest is: A = P(1 + r/n)^(nt) where A is the amount, P is the principal amount, r is the rate of interest, n is the number of times interest is compounded per year, and t is the time in years.

Given Data

- Principal amount (P) = Rs. 22,500
- Simple interest = Rs. 10,800
- Time (t) = 4 years
- Compound interest time (t) = 2 years

Calculation of Rate of Interest

- Using the formula for simple interest: SI = (P * r * t) / 100
- 10,800 = (22,500 * r * 4) / 100
- r = 10.67%

Calculation of Compound Interest

- Using the given data and the rate of interest calculated above, we can find the compound interest for 2 years using the compound interest formula.
- A = 22,500(1 + 0.1067/1)^(1*2)
- A = 22,500(1.1067)^2
- A = 22,500 * 1.225043
- A ≈ Rs. 27,563.97

Therefore, the compound interest accrued on the same amount at the same rate at the end of two years is approximately Rs. 27,563.97.
Thus, the correct answer is option B - Rs. 5,724.
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The simple interest accrued on an amount of Rs. 22,500 at the end of four years is Rs. 10,800. What would be the compound interest accrued on the same amount at the same rate at the end of two years?a)Rs.14,908b)Rs.5,724c)Rs.26,234d)Rs.8,568e)None of theseCorrect answer is option 'B'. Can you explain this answer?
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The simple interest accrued on an amount of Rs. 22,500 at the end of four years is Rs. 10,800. What would be the compound interest accrued on the same amount at the same rate at the end of two years?a)Rs.14,908b)Rs.5,724c)Rs.26,234d)Rs.8,568e)None of theseCorrect answer is option 'B'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about The simple interest accrued on an amount of Rs. 22,500 at the end of four years is Rs. 10,800. What would be the compound interest accrued on the same amount at the same rate at the end of two years?a)Rs.14,908b)Rs.5,724c)Rs.26,234d)Rs.8,568e)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The simple interest accrued on an amount of Rs. 22,500 at the end of four years is Rs. 10,800. What would be the compound interest accrued on the same amount at the same rate at the end of two years?a)Rs.14,908b)Rs.5,724c)Rs.26,234d)Rs.8,568e)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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