Multiple choice

Find the amount of $Rs. 800$ at compound interest in $2\dfrac {1}{2}$ years at $5$ p.c

  1. $Rs. 104.5$
  2. $Rs. 804.5$
  3. $Rs. 904.05$
  4. $800 \left (1 + \dfrac {5}{100}\right )^{2\dfrac {1}{2}}$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P(1 + r/100)^n. For 2.5 years, A = 800 * (1 + 0.05)^2 * (1 + 0.05 * 0.5) = 800 * 1.1025 * 1.025 = 904.05.

AI explanation

For fractional time periods, the compound interest formula is applied for the full years and simple interest is used for the fraction, so the amount equals 800 multiplied by the quantity 1.05 squared, all multiplied by the quantity 1 plus 0.05 divided by 2. This simplifies to 800 multiplied by 1.1025 multiplied by 1.025, which equals 882 multiplied by 1.025. The final calculation gives a total amount of Rs. 904.05. The result is Rs. 904.05.

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