Multiple choice

Nilima invested Rs 60,000 in a nationalised bank for 2 years at the rate of 8.5 p.c.p.a. at compound interest. What amount will Nilima receive from the bank at the end of 2 years?

  1. Rs 70433.5

  2. Rs 70200

  3. Rs 70933.5

  4. Rs 70633.5
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Compound Interest formula: A = P(1 + r/100)ⁿ. Principal = Rs 60,000, rate = 8.5%, time = 2 years. A = 60000 × (1 + 8.5/100)² = 60000 × (1.085)² = 60000 × 1.177225 = Rs 70633.5. The compound amount after 2 years is Rs 70633.5.

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