Question

The simple interest on a sum of money at 10% per annum for 2 years is Rs. 8,100. Compounded annually, what would be the compound interest (in Rs.) on the same sum for the same period at the same rate of interest?

• A. 8,100
• B. 8,505
• C. 8,715
• D. 9,000

Answer 1

Answer:

B. 8,505

S.I for 2 years = 10% + 10% = 20%. C.I for 2 years = 10% + 10% + 1% = 21% 20% = 8100 21% = 8100 × (21/20) 21% = 8505