Multiple choice

What will be compound interest obtained on an amount of Rs. 3500 at the rate of 12 p.c.p.a. in 2 years?

  1. Rs. 850.60

  2. Rs. 862.25

  3. Rs. 828.16

  4. Rs. 890.40

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Compound Interest = P[(1 + r/100)² - 1] = 3500[(1 + 12/100)² - 1] = 3500[(1.12)² - 1] = 3500[1.2544 - 1] = 3500 × 0.2544 = Rs. 890.40. Option D matches this calculation exactly.

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