Multiple choice

What would be the compound interest obtained on an amount of Rs 12000 at the rate of 16 percent per annum for 2 years ?

  1. Rs.4142.2

  2. Rs.4145.2

  3. Rs.4147.2

  4. Rs.5149.7

  5. Rs.4567.5
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CI = P[(1+r/100)^t - 1]. P=12000, r=16%, t=2. Amount = 12000×(1.16)^2 = 12000×1.3456 = 16147.2. CI = 16147.2-12000 = 4147.2. Apply compound interest formula systematically.

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