Multiple choice

A sum of money of ₹2400 becomes ₹ 3600 in 6 years at a certain rate of compound interest (compounded annually). What will be the amount after 12 year at the same rate of interest?

  1. ₹6000

  2. ₹4800

  3. ₹5400

  4. ₹4500
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For compound interest compounded annually, A = P(1 + r)^n. From the given data: 3600 = 2400(1 + r)^6, so (1 + r)^6 = 1.5. After 12 years: A = 2400(1 + r)^12 = 2400 × [(1 + r)^6]² = 2400 × (1.5)² = 2400 × 2.25 = ₹5400. Option C is correct.

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