Multiple choice

Which of the following could be the compound interest on Rs. 9650 for 2 years at 8.3% per annum?

  1. Rs. 1675.34

  2. Rs. 13,292

  3. Rs. 22,942

  4. Rs. 2563.28

  5. Rs. 12,213.28
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

CI for 2 years at 8.3% is P * ((1 + 0.083)^2 - 1) = 9650 * (1.172889 - 1) = 9650 * 0.172889 = 1668.37. The closest value is 1675.34.

AI explanation

Using the compound interest formula A = P(1 + R/100)^n, the total amount is 9650(1 + 8.3/100)^2. This evaluates to 9650 multiplied by 1.083 squared, which is approximately 11325.3. The compound interest is the total amount minus the principal of 9650, yielding Rs. 1675.34.

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