If the simple interest on a sum of money for 2 years at 5% per annum is Tk. What is the compound interest on the same sum at the same rate and for the same time?

If the simple interest on a sum of money for 2 years at 5% per annum is Tk. What is the compound interest on the same sum at the same rate and for the same time?

A Tk. 52

B Tk. 51.25

C Tk. 54.25

D Tk. 60

Solution

Correct Answer: Option B

Formula: Compound Interest = p(1+r)^n

here, p=50 r = 5% n=2 years