Multiple choice

Pragya deposits an amount of Rs.10,000 to obtain a compound interest at the rate of 7.5% per annum. What total amount will Pragya get at the end of 1 year and 3 months ?

  1. 10951.56

  2. 10950

  3. 11190

  4. 19085

  5. None of these
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A Correct answer
Explanation

For compound interest, the amount is calculated as A = P * (1 + r/100)^n. For 1 year and 3 months (1.25 years), the calculation is 10000 * (1 + 7.5/100)^1 * (1 + (7.5/100 * 0.25)). This yields 10000 * 1.075 * 1.01875 = 10951.5625.

AI explanation

The amount is calculated for 1 year and 3 months using the compound interest method for the year and simple interest for the fractional months. The amount after one year is 10000 multiplied by 1.075, which equals Rs. 10,750. For the remaining 3 months, which is 1/4 of a year, the simple interest is 10750 multiplied by 7.5 multiplied by 1, all divided by 100 and 4, yielding Rs. 201.5625. Adding this interest to the one-year amount gives 10750 plus 201.5625, resulting in Rs. 10951.56.

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