Multiple choice

What is the difference of the compound interest earned on Rs. 15000 at the rate of 16\% for 2 years and 3 years?

  1. 3000

  2. 2300

  3. 3200

  4. 2800

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CI for 2 years: 15000 × 1.16² - 15000 = 15000(1.3456 - 1) = 5184. CI for 3 years: 15000 × 1.16³ - 15000 = 15000(1.560896 - 1) = 8384. The difference is 8384 - 5184 = 3200.