{"id":3992,"date":"2024-03-05T15:59:21","date_gmt":"2024-03-05T15:59:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=3992"},"modified":"2024-03-05T15:59:21","modified_gmt":"2024-03-05T15:59:21","slug":"what-will-be-the-compound-interest-on-4000-00-for-2-years-at-the-rate-of-5-per-annum","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-will-be-the-compound-interest-on-4000-00-for-2-years-at-the-rate-of-5-per-annum\/","title":{"rendered":"What will be the compound interest on ` 4,000.00 for 2 years at the rate of 5% Per annum ?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;` 410&#8243; option2=&#8221;` 420&#8243; option3=&#8221;` 421&#8243; option4=&#8221;` 427&#8243; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is (c) `421.<\/p>\n<p>The compound interest is calculated by using the following formula:<\/p>\n<p>$C.I. = P(1 + r\/n)^nt$<\/p>\n<p>where:<\/p>\n<ul>\n<li>$C.I.$ is the compound interest<\/li>\n<li>$P$ is the principal amount<\/li>\n<li>$r$ is the interest rate<\/li>\n<li>$n$ is the number of times interest is compounded per year<\/li>\n<li>$t$ is the number of years<\/li>\n<\/ul>\n<p>In this case, we have:<\/p>\n<ul>\n<li>$P = 4000$<\/li>\n<li>$r = 5\\%$<\/li>\n<li>$n = 2$<\/li>\n<li>$t = 2$<\/li>\n<\/ul>\n<p>Substituting these values into the formula, we get:<\/p>\n<p>$C.I. = 4000(1 + 0.05\/1)^2(2)$<\/p>\n<p>$C.I. = 4000(1.05)^4$<\/p>\n<p>$C.I. = 421.04$<\/p>\n<p>Therefore, the compound interest on <code>4,000.00 for 2 years at the rate of 5% Per annum is<\/code>421.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;` 410&#8243; option2=&#8221;` 420&#8243; option3=&#8221;` 421&#8243; option4=&#8221;` 427&#8243; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[],"class_list":["post-3992","post","type-post","status-publish","format-standard","hentry","category-mathematics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What will be the compound interest on ` 4,000.00 for 2 years at the rate of 5% Per annum ?<\/title>\n<meta name=\"description\" content=\"The compound interest is calculated by using the following formula:\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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