The C.I on ₹ 5000 at the rate of 8% for 2 years is ………………. 

A) ₹ 832 

B) ₹ 238 

C) ₹ 161 

D) ₹ 169

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2 Answers

Correct option is  A) ₹ 832

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Correct option is (A) ₹ 832

\(C.I.=P(1+\frac R{100})^n-P\)

\(=5000(1+\frac8{100})^2-5000\)  \((\because\) P = Rs 5000, R = 8% and n = 2 years)

\(=5000(1+\frac{16}{100}+\frac{64}{10000}-1)\)

\(=5000\times\frac{1600+64}{10000}\)

\(=\frac{1664}2=832\)

\(\therefore\) Required C.I. = Rs 832

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