Multiple choice

What will be the compound interest on Rs. 13,600 for 2 years at 10% per annum compounded annually?

  1. Rs. 2,650

  2. Rs. 2,856

  3. Rs. 2,800

  4. Rs. 2,900

  5. Rs. 2,850
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest is calculated as P * ((1 + r/100)^n - 1). For 13,600 at 10% for 2 years, this is 13,600 * ((1.1)^2 - 1) = 13,600 * 0.21 = 2,856.

AI explanation

Using the compound interest formula, Amount = Principal x (1 + R/100)^T, the amount equals 13600 x (1 + 10/100)^2. This simplifies to 13600 x (11/10) x (11/10), resulting in an amount of Rs. 16456. The compound interest is the amount minus the principal, which is 16456 minus 13600, equalling Rs. 2856.

Keep practicing — related questions