Defence Exam > Defence Questions > Compound interest on Rs. 40,000 for 4 years a...
Start Learning for Free
Compound interest on Rs. 40,000 for 4 years at 10% per annum will be
- a)18000
- b)17564
- c)18564
- d)16000
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)...
Most Upvoted Answer
Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)...
Understanding Compound Interest
To calculate compound interest, we use the formula:
A = P (1 + r/n)^(nt)
Where:
- A = the amount of money accumulated after n years, including interest.
- P = the principal amount (the initial money).
- r = annual interest rate (decimal).
- n = number of times that interest is compounded per year.
- t = number of years the money is invested or borrowed.
In this case:
- Principal (P) = Rs. 40,000
- Rate (r) = 10% per annum = 0.10
- Time (t) = 4 years
- Compounding frequency (n) = 1 (annually)
Step-by-Step Calculation
1. Calculate the Total Amount (A):
- A = 40000 * (1 + 0.10/1)^(1*4)
- A = 40000 * (1 + 0.10)^4
- A = 40000 * (1.10)^4
- A = 40000 * 1.4641
- A ≈ Rs. 58,564
2. Calculate the Compound Interest (CI):
- CI = A - P
- CI = 58,564 - 40,000
- CI ≈ Rs. 18,564
Conclusion
The compound interest on Rs. 40,000 for 4 years at an annual rate of 10% is approximately Rs. 18,564. Therefore, the correct answer is option 'C'.
To calculate compound interest, we use the formula:
A = P (1 + r/n)^(nt)
Where:
- A = the amount of money accumulated after n years, including interest.
- P = the principal amount (the initial money).
- r = annual interest rate (decimal).
- n = number of times that interest is compounded per year.
- t = number of years the money is invested or borrowed.
In this case:
- Principal (P) = Rs. 40,000
- Rate (r) = 10% per annum = 0.10
- Time (t) = 4 years
- Compounding frequency (n) = 1 (annually)
Step-by-Step Calculation
1. Calculate the Total Amount (A):
- A = 40000 * (1 + 0.10/1)^(1*4)
- A = 40000 * (1 + 0.10)^4
- A = 40000 * (1.10)^4
- A = 40000 * 1.4641
- A ≈ Rs. 58,564
2. Calculate the Compound Interest (CI):
- CI = A - P
- CI = 58,564 - 40,000
- CI ≈ Rs. 18,564
Conclusion
The compound interest on Rs. 40,000 for 4 years at an annual rate of 10% is approximately Rs. 18,564. Therefore, the correct answer is option 'C'.
|
Explore Courses for Defence exam
|
|
Top Courses for DefenceView all
Question Description
Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? for Defence 2025 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Defence 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer?.
Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? for Defence 2025 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Defence 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer?.
Solutions for Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Defence.
Download more important topics, notes, lectures and mock test series for Defence Exam by signing up for free.
Here you can find the meaning of Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Compound interest on Rs. 40,000 for 4 years at 10% per annum will bea)18000b)17564c)18564d)16000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Defence tests.
|
|
Explore Courses for Defence exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup