Multiple choice

Mr. Ayush borrows Rs. 3000 at 5% per annum compound interest. The compound interest compounded annually for 2 years is:

  1. Rs. 370.5

  2. Rs. 307.5

  3. Rs. 3307.5

  4. Rs. 3370.5
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = P * (1 + r/100)^n = 3000 * (1.05)^2 = 3000 * 1.1025 = 3307.5. Compound Interest = Amount - Principal = 3307.5 - 3000 = 307.5.

AI explanation

Using the compound interest formula, Amount equals Principal multiplied by (1 plus R divided by 100) raised to the power of n. The amount is 3000 multiplied by (1 plus 5 divided by 100) squared, which is 3000 multiplied by 1.05 multiplied by 1.05, resulting in Rs. 3307.5. The compound interest is the amount minus the principal, so 3307.5 minus 3000 equals Rs. 307.5.

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