Multiple choice

A sum of Rs. 6000 is borrowed at compound interest at the rate of 8% per annum. What will be the amount (in Rs.) after 2 years?

  1. 6998.4

  2. 6960

  3. 6784.4

  4. 6869.4
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A Correct answer
Explanation

Amount = P * (1 + r/100)^n = 6000 * (1 + 8/100)^2 = 6000 * (1.08)^2 = 6000 * 1.1664 = 6998.4.

AI explanation

Using the compound interest formula Amount = P * (1 + R/100)^T, we substitute the given values. Amount = 6000 * (1 + 8/100)^2, which becomes 6000 * (27/25) * (27/25). This simplifies to 6000 * 1.1664, resulting in Rs. 6998.4.

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