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What would be the compound interest obtained on an amount of Rs. 5300 at the rate of 15 p.c.p.a. after 2 years?

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What would be the compound interest obtained on an amount of Rs. 5300 at the rate of 15 p.c.p.a. after 2 years?


1).

Rs. 1709.25


2).

Rs. 1708.65


3).

Rs. 1709.75


4).

Rs. 1725.65


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1 answers

1 vote
Answered by on | Votes 1 |

Compounded Amount $( = P{\left( {1 + {r \over {100}}} \right)^t})$

$(\eqalign{ & = 5300{\left( {1 + {{15} \over {100}}} \right)^2} \cr & = {{5300 \times 115 \times 115} \over {100 \times 100}} \cr & = 7009.25 \cr})$

Compound interest = Compounded amount – Principal amount

= 7009.25 – 5300

= 1709.25

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