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What is the interest earned on Rs. 480 in 288 days, compounded annually at the rate of 6%?

a) Rs. 25.60
b) Rs. 20.45
c) Rs. 24.30
d) Rs. 18.90

User Jackb
by
7.7k points

1 Answer

3 votes

Final answer:

The interest earned is approximately Rs. 29.22.

Step-by-step explanation:

To calculate the interest earned, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

  • A is the total amount
  • P is the principal amount (initial deposit)
  • r is the annual interest rate (in decimal form)
  • n is the number of times interest is compounded per year
  • t is the time in years

In this case, the principal (P) is Rs. 480, the annual interest rate (r) is 6%, and the time (t) is 288 days, which is equivalent to 288/365 years.

Plugging in the values, we have:

A = 480(1 + 0.06/1)^(1*(288/365))

A = 480(1 + 0.06)^(288/365)

A = 480(1.06)^(0.789041096)

A ≈ 480(1.0625672) ≈ 509.21612

The interest earned is the total amount minus the principal amount:

Interest = A - P = 509.21612 - 480 = 29.21612 ≈ Rs. 29.22

Therefore, the correct answer is not listed among the options provided. The interest earned is approximately Rs. 29.22.

User Ben In CA
by
7.3k points