Viral deposited a sum of ₹71525 at 20% rate of interest per annum, compounded annually. The total amount (in ₹) received by Viral after 2 years is:

1. A

   102996

2. B

   103403

3. C

   102783

4. D

   103218

Appeared in: DSSSB 6 September 2024

Explanation

• The problem requires calculating the final amount using the compound interest formula: A = P(1 + R/100)ᵀ.
• The principal (P) is ₹71525, the annual interest rate (R) is 20%, and the time period (T) is 2 years.
• Substituting these values gives: A = 71525 × (1 + 20/100)².
• Simplifying the expression: A = 71525 × (1.2)² = 71525 × 1.44.
• The final calculation results in A = ₹102996, which matches the correct option.

Why Other Options Were Wrong

• Option B: This value is incorrect and likely results from a miscalculation, such as an error in squaring the term (1 + R/100) or an arithmetic mistake during multiplication.
• Option C: This is an incorrect numerical result. It may arise from calculation errors, for instance, incorrectly simplifying the fraction or making a mistake in the final multiplication step.
• Option D: This option represents a calculation error. A common mistake could be calculating simple interest for two years and adding it to the principal, or an error in the multiplication of 2861 by 36.

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Clinical Relevance

• Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Calculation of Amount using Compound Interest Formula as background academic context rather than a clinical decision trigger.
• This question tests general aptitude and numerical ability, which is a component of many nursing entrance and recruitment examinations.
• Strong numerical skills are essential for nurses for tasks such as medication dosage calculation, IV drip rate monitoring, and interpreting patient data charts.
• While this specific financial calculation isn't a daily nursing task, the underlying mathematical reasoning is a required competency.

How to Approach the Question

• First, identify the type of question. This is a direct calculation problem from the topic of compound interest.
• Identify all the given values from the question: Principal (P) = ₹71525, Rate (R) = 20% per annum, and Time (T) = 2 years.
• Recall the correct formula for the amount when interest is compounded annually: A = P(1 + R/100)ᵀ.
• Substitute the identified values into the formula carefully.
• Perform the calculation step-by-step to avoid errors. First, solve the expression in the parentheses, then the exponent, and finally, multiply by the principal.
• Compare your final calculated amount with the given options to find the correct answer.

Concept Tested & Keywords

• Concept Tested: Calculation of Amount using Compound Interest Formula
• Stem keywords: sum, rate of interest, compounded annually, total amount, 2 years
• Lead-in keywords: total amount

Question ID

Q8izpUMd5wStimfJwOZrUC

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