Q.If Dibas lends ₹5000 at 5% interest for 2 years, then how much total amount will he receive at the end of 2 years with compound interest? (a) ₹ 5511.50 (b) ₹ 5312.50 (c) ₹ 5542.50 (d) ₹ 5512.50
Answer: D
Compound amount foCompound amount for ₹5000 at 5% interest for 2 years: \[ = 5000(1 + \frac{5}{100})^2 \\ = 5000(1 + \frac{1}{20})^2 \\ = 5000\left(\frac{21}{20}\right)^2 \\ = 5000 \times \frac{21}{20} \times \frac{21}{20} \\ = ₹5512.50 \]5000 at 5% interest for 2 years: \[ = 5000(1 + \frac{5}{100})^2 \\ = 5000(1 + \frac{1}{20})^2 \\ = 5000\left(\frac{21}{20}\right)^2 \\ = 5000 \times \frac{21}{20} \times \frac{21}{20} \\ = ₹5512.50 \]
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