Multiple choice

What is the compound interest on a sum of Rs. 75000 at 4% per annum in 2 years?

  1. Rs. 618

  2. Rs. 612

  3. Rs. 624

  4. Rs. 606

  5. Rs. 621
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest formula: A = P(1 + r/n)^(nt). For annual compounding, CI = P[(1 + r)^t - 1]. Here: 75000[(1.04)^2 - 1] = 75000[1.0816 - 1] = 75000 × 0.0816 = Rs. 612. Option A is close but incorrect; options C, D, E are miscalculations.

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