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Q.

The compound interest on Rs.5000 at 8%  per annum for 2 years, compounded annually is

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a

Rs. 800

b

Rs. 825

c

Rs. 832

d

Rs. 850

answer is C.

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Detailed Solution

Principle P=Rs.5000, rate of interest R=8%, Time n=2years C.I=?

C.I=P(1+R100)nP

C.I=5000(1+8100)25000

C.I=5000×108100×1081005000

C.I=58325000=Rs.832

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