82 Views

Question : A sum of INR 1,00,000 was taken from a bank at the rate of 7% p.a to be compounded annually for 5 years. Calculate the compound interest. (Closest to an INR)

Option 1: INR 40,000

Option 2: INR 20,963

Option 3: INR 40,567

Option 4: INR 40,255


Team Careers360 11th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: INR 40,255


Solution : Given: Principal = INR 100000
Rate = 7%
Time = 5 years
We know that,
$CI= P((1+\frac{R}{100})^{T}-1)$
$= 100000((1+\frac{7}{100})^{5}-1)$
$= 100000((\frac{107}{100})^{5}-1)$
$= 100000(\frac{14025517307}{10000000000}-1)$
$= 100000(\frac{14025517307-10000000000}{10000000000})$
$= 100000(\frac{4025517307}{10000000000})$
$= \frac{4025517307}{100000}$
$= 40255.17307$
= 40255 (Closest to an INR)
Hence, the correct answer is INR 40255.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books