Multiple choice

What will be the compound interest on the sum of Rs 4000 at the rate 12 p.c.p.a. at the end of two years?

  1. Rs 1019.50

  2. Rs 1017.60

  3. Rs 1013.40

  4. Rs 1016.80

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

Using the compound interest formula: A = P(1 + r/100)ⁿ = 4000(1 + 12/100)² = 4000(1.12)² = 4000 × 1.2544 = 5017.60. Compound Interest = 5017.60 - 4000 = 1017.60.

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