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Quantitative Aptitude
easyQ. No. 6805-what-will-be-the-amount-if-rs-5000-is-invested-at-10-compound-interest-for-2-years

What will be the amount if Rs.5000 is invested at 10% compound interest for 2 years?

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This Profit and Loss question develops correct identification of cost price, selling price, marked price, discount and the relevant percentage base in “What will be the amount if Rs.5000 is invested at 10% compound interest for 2 years?”. The worked explanation retains the original numerical relationship, verifies 6050, and distinguishes common traps such as reversing CP and SP, adding successive rates or confusing discount with loss. It is designed for SSC, Railway, Banking, State examinations and other quantitative aptitude tests where accurate interpretation must accompany fast calculation.

A6100
B6150
C6000
D6050
Correct Answer: 6050Your Answer: D

Explanation

After comparing cost and selling values, the result is 6050. The question-specific working supplied in the record is: This compound interest solved example uses the step-by-step amount formula A = P(1 + R/100)^n, which is the fastest shortcut trick for annual compounding. Substituting P = 5000, R = 10, and n = 2 gives A = 5000(1.10)^2. Since 1.10 squared is 1.21, the final amount is 5000 × 1.21 = ₹6050. The amount includes both the original principal and accumulated compound interest. Therefore, ₹6050 is correct, matching option B.. The distractors 6100, 6150, 6000 can result from interchanging cost price and selling price, treating discount as loss, adding successive rates, ignoring quantity, or rounding before the final step. This method preserves the numerical relationships in the stem and develops formula selection, percentage-base recognition and option elimination for SSC, Railway, Banking and other competitive aptitude examinations.

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FAQ

Profit and Loss FAQs

Common questions and clear answers for this topic.

Which method applies to this question?

Profit = SP − CP, Loss = CP − SP, and the percentage is calculated on cost price.

What is the verified answer?

6050, option D.

Which percentage base is most important?

Profit or loss percent is based on cost price, while discount is based on marked price.

How can the answer be checked?

Reverse the percentage relation or assume a base of 100 and reconstruct the final value.

What is Profit and Loss in mathematics and what are the basic terms?

Profit and Loss is a key Quantitative Aptitude topic in SSC CGL, IBPS Bank PO, SBI PO, CAT, and Railway exams. Basic terms: Cost Price (CP) - price at which an item is purchased. Selling Price (SP) - price at which it is sold. Profit = SP - CP (when SP > CP). Loss = CP - SP (when CP > SP). Profit% = (Profit/CP) x 100. Loss% = (Loss/CP) x 100.

What is the difference between Marked Price, Selling Price, and Discount?

Marked Price (MP) is the price printed on the item before discount. Discount = MP - SP. Discount% = (Discount/MP) x 100. SP = MP x (100-Discount%)/100. If a shopkeeper marks up by 40% and gives 20% discount: SP = CP x 1.40 x 0.80 = 1.12CP = 12% profit. Profit% and Loss% are always calculated on Cost Price unless specified otherwise.

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