Multiple choice

What will be compound interest obtained on an amount of Rs. 2500 at the rate of 6 p.c.p.a. after 2 years?

  1. Rs. 311

  2. Rs.309

  3. Rs. 318

  4. Rs. 322

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

Compound interest formula: A = P(1 + r/100)^t. Here P = 2500, r = 6%, t = 2 years. Amount = 2500 × (1.06)^2 = 2500 × 1.1236 = 2809. CI = Amount - Principal = 2809 - 2500 = Rs. 309. The calculation checks out correctly.

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