Multiple choice

Astha invested a certain amount at the rate of 19 p.c.p.a. for 15 years and obtained simple interest of 27075. If the same amount is invested at the same rate of interest for 2 years, what will be the compound interest at the end of 2 years?

  1. Rs. 3952.95

  2. Rs. 3750.95

  3. Rs. 3255.95

  4. Rs. 4452.95

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

First find the principal from SI: SI = P×R×T/100, so 27075 = P×19×15/100, giving P = (27075×100)/(19×15) = 2707500/285 = 9500. Now calculate CI for 2 years at 19%: CI = P[(1 + R/100)^T - 1] = 9500[(1 + 19/100)^2 - 1] = 9500[(1.19)^2 - 1] = 9500[1.4161 - 1] = 9500×0.4161 = 3952.95. This matches option A.

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