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Q.

Find the compound interest on Rs. 50,000 at 4% per annum for two years compounded annually.

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a

4000

b

4080

c

4280

d

4050

answer is B.

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Detailed Solution

Concept- The expression which helps in finding compound interest is: Question Imagewhere,
Question Image The given parameters are:
Question ImageQuestion ImageFirst, we will find the amount by substituting the values in the formula
Question ImageNow, we will calculate the compound interest
Question ImageHence, the correct answer is option 2) 4080
 
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Find the compound interest on Rs. 50,000 at 4% per annum for two years compounded annually.