alleryFind the compound interest on Rs 8,000 for 2 years at 5 per cent compounded annually.
ARs 820
BRs 800
CRs 840
DRs 810
Answer & Solution
Correct answer: A. Rs 820
1. Year 1 interest = (5/100) x 8000 = Rs 400.
2. Principal for year 2 = 8000 + 400 = Rs 8,400.
3. Year 2 interest = (5/100) x 8400 = Rs 420.
4. Compound interest = 400 + 420 = Rs 820.
5. Simple interest here would be Rs 800, so compounding adds Rs 20.
_Source: syllabus Maths Ch7 'Comparing Quantities', TRY THESE after Example 8_
Keep practising Simple & Compound Interest
Browse all Simple & Compound Interest questions for IBPS Clerk, or explore more Quantitative Aptitude topics.
Related questions
For the same principal, rate and a period of one year, compound interest compounded annualAt simple interest, a sum doubles itself in 8 years. The annual rate is:Find the simple interest on 5,000 at 8% per annum for 3 years.For 10,000 at 10% per annum for 2 years, compound interest exceeds simple interest by:20,000 is borrowed for 2 years at 8% compounded annually. The compound interest is:Compound interest differs from simple interest because compound interest is calculated on:Find the simple interest on 15,000 at 5% per annum for 2 years.A sum of 10,000 is borrowed at 15% per annum simple interest for 2 years. The amount repay