Multiple choice

The compound interest on an amount of Rs. 15000 after 2 years is Rs. 2496. What is the rate of interest p.c.p.a.?

  1. 8

  2. 10

  3. 6

  4. 12

  5. 14
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A Correct answer
Explanation

Using the compound interest formula A = P(1 + r)^n, we find that Rs. 15000 at 8% for 2 years gives: A = 15000 × (1.08)^2 = 15000 × 1.1664 = Rs. 17496. The interest is 17496 - 15000 = Rs. 2496, which matches the given value. Therefore, the rate is 8% per annum.

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