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Ashish hiralkar

· started a discussion

· 1 Months ago

interest should be 21 % (Question: 190619.0 )

interest should be 21 % ????? please check

Question:
What is the sum on which the compound interest for the 2nd year at 10% p.a. will be Rs. 572 ?
Options:
A) Rs. 4800
B) Rs. 5000
C) Rs. 5200
D) Rs. 5400
Solution:
Ans: (c) Suppose principal = Rs. 100 

Interest of 1st year 

= 10% of 100 = Rs. 10 

Interest for 2nd year = 

= 10 + 10% of 10 = Rs. 11 

\(\therefore \) Required principal 

= \(\cfrac{100}{11}\) × 572 

= Rs. 5200  

Ganji manohar

· commented

· 1 Months ago

here he asking only for second year c.i. i.e 11%

Knowledge Expert

· commented

· 1 Months ago

Dear Student,
please read carefully, (10+10% of 10)= 10+1=11

Alternative method
Explanation,
We know CI means interest on interest. It is the result of reinvesting interest,
interest for first year
I= p* r*t /100
I= (P* 10*!)/ 100
I = p/10
A= p+P/10= 11p/10 (Amount we get after first year)
for second year (Amount of first year become P for next year)
I= p* r*t /100
572= (11p/10*10*1)/100
P= 5200

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