Multiple choice

What would be the compound interest obtained on an amount of Rs 12000 at the rate of 8 percent per annum for 2 years?

  1. Rs.1985.75

  2. Rs.1875.25

  3. Rs.2014.5

  4. Rs.1996.8

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

Compound interest formula: A = P(1 + r/100)^n. Here P=12000, r=8%, n=2. A = 12000(1.08)² = 12000 × 1.1664 = 13996.8. CI = A - P = 13996.8 - 12000 = 1996.8. The compound interest is Rs. 1996.8.

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