Multiple choice

If the simple interest on a certain sum of money is (2700) in (3) years at the rate of interest (12\%) per annum. Find the compound interest of (2) years at the same rate of interest on the same sum?

  1. 2296

  2. 2189

  3. 1908

  4. 1906

  5. 1800
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest formula: SI = P × R × T / 100. 2700 = P × 12 × 3 / 100, so P = 2700 × 100 / 36 = Rs. 7500. Compound Interest for 2 years at 12%: Amount = 7500 × (1 + 12/100)² = 7500 × 1.2544 = 9408. CI = 9408 - 7500 = Rs. 1908. Option A (2296) and B (2189) are calculation errors.

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