GATE EC 2018 Set 1 — Question 6
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General Aptitude → Quantitative Aptitude → Simple & Compound Interest
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Question
Leila aspires to buy a car worth Rs. 10,00,000 after 5 years. What is the minimum amount in Rupees that she should deposit now in a bank which offers 10% annual rate of interest, if the interest was compounded annually?
Correct answer
(B) 6,21,000
Solution
The formula for compound interest is , where:
= Future value (Rs. 10,00,000)
= Principal amount (amount to be deposited now)
= Annual interest rate (10%)
= Number of years (5)Substituting the values:Among the given options, the closest minimum amount is Rs. 6,21,000. Therefore, the correct option is (B).
= Future value (Rs. 10,00,000)
= Principal amount (amount to be deposited now)
= Annual interest rate (10%)
= Number of years (5)Substituting the values:Among the given options, the closest minimum amount is Rs. 6,21,000. Therefore, the correct option is (B).
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