Multiple choice

What would be the compound interest obtained on an amount of Rs. 1628 at the rate of 4 p.c.p.a. after 2 year?

  1. Rs 192.87

  2. Rs 132.84

  3. Rs 162.56

  4. Rs 144.28

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

First year interest = 1628 × 0.04 = Rs. 65.12. Amount after 1 year = 1628 + 65.12 = Rs. 1693.12. Second year interest = 1693.12 × 0.04 = Rs. 67.72. Total compound interest = 65.12 + 67.72 = Rs. 132.84.

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