Multiple choice

Find the compound interest on Rs. 60000 at 8% per annum in 2 years and 6 months.

  1. 6481.24

  2. 5984.60

  3. 12783.36

  4. 6865.40
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For compound interest with fractional time, calculate full periods first: A = 60000(1.08)^2 = 69984. For the remaining 6 months, use simple interest on this amount: SI = 69984 × 8/100 × 0.5 = 2799.36. Total amount = 69984 + 2799.36 = 72783.36. Compound Interest = 72783.36 - 60000 = 12783.36.

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