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Multiple choice

What will be the compound interest on an amount of Rs.5000 for a period of 2 years at 8 p.c.p.a.?

  1. Rs. 840

  2. Rs. 450

  3. Rs. 823

  4. Rs. 416

  5. Rs. 832

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Compound interest for 2 years at 8%: Amount = 5000(1 + 0.08)² = 5000 × 1.1664 = 5832. Compound Interest = 5832 - 5000 = 832.

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