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6.Interest
hard
The simple interest accrued on a certain principal is ₹ $2,000$ in five years at the rate of $4$ percent $p.a.$ What would be the compound interest (In ₹) accrued on the same principal at the same rate in two years?
A
$716$
B
$724$
C
$824$
D
$816$
Solution
(d) Principal $=\frac{\text { Simple Interest } \times 100}{\text { Time } \times \text { Rate }}$
$=\frac{2000 \times 100}{5 \times 4}=₹ 10,000$
$\therefore \quad$ Compound Interest
$=\operatorname{Principal}\left[\left(1+\frac{ Rate }{100}\right)^{ Time }-1\right]$
$=1000\left[\left(1+\frac{4}{100}\right)^{2}-1\right]$
$=1000\left[\left(\frac{26}{25}\right)^{2}-1\right]$
$=\frac{10000 \times 51}{625}=₹ 816$
Standard 13
Quantitative Aptitude
