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Question : Find the compound interest on Rs 1,65,400 at a rate of 5% per annum for four years, compounded annually.

Option 1: Rs. 34,564.98

Option 2: Rs. 34,527.87

Option 3: Rs. 35,644.73

Option 4: Rs. 54,367.6


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs. 35,644.73


Solution : Use :
Amount = P (1+$\frac{r}{100})^{t}$ where,
$r$ = Rate of interest per annum compounded annually
$t$ = Time
According to the question
⇒ Amount = 165400 (1+$\frac{5}{100})^{4}$
= 165400 (1+$\frac{1}{20})^{4}$
= 165400($\frac{21}{20})^{4}$ = 201044.734
⇒ Compound Interest = A – P = 201044.734 – 165400 = 35,644.73
Hence, the correct answer is Rs. 35,644.73

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