If in 2 years at simple interest the principal increases by 16%, what will be the compound interest earned (in Rs.) on Rs. 25,000 in 2 years at the same rate?
- 4160
- 4060
- 4260
- 4000
Explanation
Let the rate of interest be r%.
Simple interest earned on Rs. 25000 in 2 years = 25000 × 0.16 = Rs. 4000
4000 = (25000 × r × 2)/100
⇒ r = 8%
Compound interest in 2 years = 25000 [1 + 8/100]2 - 25000
⇒ 29160 - 25000 = Rs. 4160
Related MCQs
- 101.2%
- 102.2%
- 103.2%
- None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
- 14⅔%
- 15⅔%
- 16⅔%
- None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
