Multiple choice

Find the compound interest on a principal of Rs. 3072 invested at 6.25% rate of interest per annum for 2 years.

  1. 420 Rs

  2. 512 Rs

  3. 360 Rs

  4. 396 Rs

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Using the compound interest formula: CI = P[(1 + r/100)^t - 1]. Here P = Rs. 3072, r = 6.25%, t = 2 years. CI = 3072[(1.0625)^2 - 1] = 3072[1.1289 - 1] = 3072 × 0.1289 ≈ Rs. 396. Option D matches this calculation.

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