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Computer Science
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Compound Interest
If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the compound interest on the same at the same rate and for the same time?
Rs. 51.25
Rs. 52
Rs. 54.25
Rs. 60
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Correct Answer:
Rs. 51.25
Explanation:
Sum = Rs.
❨
50 x 100
❩
= Rs. 500.
2 x 5
Amount
= Rs.
[
500 x
❨
1 +
5
❩
2
]
100
= Rs.
❨
500 x
21
x
21
❩
20
20
= Rs. 551.25
∴ C.I. = Rs. (551.25 - 500) = Rs. 51.25
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