2018 · Q26
What is the principal amount which earns ₹ 210 as compound interest for the second year at 5% per annum ?
Elementary MathematicsSimple and Compound Interest
- A₹ 2000
- B₹ 3200
- C₹ 4000
- D₹ 4800
Explanation
Compound interest for the second year = P x r x (1 + r) = P x 0.05 x 1.05 = 0.0525P. Setting 0.0525P = 210 gives P = 4000. Hence option C.