AI Mentor

Check Your IQ

Free Expert Demo

Try Test

Courses

Dropper NEET Course Dropper JEE Course Class - 12 NEET Course Class - 12 JEE Course Class - 11 NEET Course Class - 11 JEE Course Class - 10 Foundation NEET Course Class - 10 Foundation JEE Course Class - 10 CBSE Course Class - 9 Foundation NEET Course Class - 9 Foundation JEE Course Class -9 CBSE Course Class - 8 CBSE Course Class - 7 CBSE Course Class - 6 CBSE Course

Offline Centres

The compound interest on Rs.50000 at 4% per annum for 2 years compounded annually is,

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

Rs.4000

Rs.4080

Rs.4280

Rs.4050

answer is B.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

It is given that, principal amount (P) = Rs.50000.
Interest rate (R) = 4% p.a.
Time (T) = 2 years
The formula for compound interest if the interest is compounded annually is,

C . I . = P 1 + R 100 T − P ... (1)

Substituting the values, we get

C . I . = 50000 1 + 4100 2 − 50000

⇒ C . I . = 50000 100 + 4 100 2 − 50000

⇒ C . I . = 500001041002 − 50000

⇒ C . I . = 50000 × 1081610000 − 50000

⇒ C . I . = 5 × 10816 − 50000

⇒ C . I . = 5 10816 − 10000

⇒ C . I . = 5 × 816

⇒ C . I . = 4080

Therefore, the compound interest on Rs.50000 at 4% per annum for 2 years that is compounded for 1 year is Rs.4080.
Hence, option (2) is correct.

Watch 3-min video & get full concept clarity

courses

No courses found

Result Producing online coaching for JEE/NEET of south India

Largest All India Test Series for JEE/NEET

Best Online Course for IIT JEE

Best Online Course for NEET

Best Online Course for CBSE

Ready to Test Your Skills?

Check your Performance Today with our Free Mock Test used by Toppers!

Take Free Test

Get Expert Academic Guidance – Connect with a Counselor Today!