| A man gets a simple interest of Rs. 1000 on a certain principle at the rate of 5% per annum in 4 yr. What compound interest will the man get on twice the principal in two years at the same rate? |
A) Rs. 1050
B) Rs. 1005
C) Rs. 11025
D) Rs. 10125
E) None of these
Correct Answer: E
Solution :
| Principal \[=\frac{\text{SI}\times 100}{\text{Time}\times \text{Rate}}=\frac{1000\times 100}{4\times 5}=\text{Rs}\text{.5000}\] |
| \[\therefore \] \[\text{CI=1000}{{\left( 1+\frac{5}{100} \right)}^{2}}-10000\] |
| \[=10000\left[ {{\left( \frac{21}{20} \right)}^{2}}-1 \right]\] |
| \[=10000\times \left( \frac{21}{20}-1 \right)\left( \frac{21}{20}+1 \right)\] |
| \[=10000\times \frac{1}{20}\times \frac{41}{20}=\text{Rs}\text{.1025}\] |
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