Arithmeticmedium · Past Paper

If simple interest on a sum for 2 years at 5% is Rs 100, what is the compound interest on the same sum for the same period and rate?

ARs 102.50
BRs 105
CRs 110
DRs 101.25

✓ Correct Answer: ARs 102.50

P = (100*100)/(2*5) = 1000. CI = 1000[(1.05)^2 - 1] = 1000[1.1025 - 1] = 102.50.

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