If the simple interest on a quantity of money is Rs. 50 after two years at 5% per annum, what is the compound interest at the same rate and for the same period?
A. Rs. 51.25
B. Rs. 52
C. Rs. 54.25
D. Rs. 60
Answer:A
If the simple interest on a quantity of money is Rs. 50 after two years at 5% per annum, what is the compound interest at the same rate and for the same period?
A. Rs. 51.25 B. Rs. 52 C. Rs. 54.25 D. Rs. 60
Explanation: Sum = 50 x 100/2 x 5 = 500 rupees=Amount = 500 x 1 + 5/100 to the second power= Rs. 500 x 21/20 = Rs. (551.25 - 500) = Rs. 51.25