An amount of Rs.9000 is invested for 2 years at interest rate of 15% per annual and compounded annually. At the end of 2nd year how much amount will be obtained as interest?
(A)
Rs. 2902.50
(B)
Rs. 2900.50
(C)
Rs. 2899.50
(D)
Rs. 2899
Answer: (A)
Explanation:
Amount = P[1+ (R/100)]n
where P = principal, R = rate of interest and n = time(years)
Amount= Rs.9000 x [1 + (15/100)]n = 9000 x (23/20)n = 23805/2 = Rs.11902.5
The amount obtained by the way of interest in compound interest = Amount – principal = Rs.(11902.5 – 9000) = Rs.2902.50
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