Multiple choice

Calculate the compound interest on Rs. 5000 compounded annually for 2 years 6 monthes at the rate of 10% per annum.

  1. Rs. 1340

  2. Rs. 1300

  3. Rs. 1348.50

  4. Rs. 1352.50
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Compound interest formula: A = P(1 + r)^t. For 2 years: A = 5000(1.1)² = 5000 × 1.21 = 6050. For remaining 6 months: A = 6050 × 1.05 = 6352.50. CI = 6352.50 - 5000 = 1352.50. Option D is correct.

Keep practicing — related questions