Multiple choice

What will be compound interest on an amount of Rs.8400 at the rate of 13.5 p.c.p.a after 2 years?

  1. Rs.2256.18

  2. Rs.2019.38

  3. Rs.2421.09

  4. Rs.2615.08

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

Use CI formula: A = P(1 + r/100)^n - P. Here P=8400, r=13.5, n=2. A = 8400[(1.135)² - 1] = 8400[1.288225 - 1] = 8400 × 0.288225 = 2421.09. The compound interest after 2 years is Rs. 2421.09.

Keep practicing — related questions