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Multiple choice

What will be the compound interest (in Rs.) on Rs. 9000 in 2 years if the sequential interest rates are 9% and 12% respectively (rounded to the nearest Rs)?

  1. 1897

  2. 1890

  3. 1987

  4. 945

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

For sequential rates: Year 1: 9000 × 1.09 = 9810. Year 2: 9810 × 1.12 = 10987.2. CI = 10987.2 - 9000 = 1987.2 ≈ 1987 Rs. Option C matches.

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