Multiple choice

Find the CI on a sum of Rs. 4352 For 2 years at 12.5% p.a. rate of interest.

  1. 1044

  2. 1220

  3. 1156

  4. 1114
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For compound interest, use the formula A = P(1 + r/100)^n. Principal P = Rs 4352, rate r = 12.5%, time n = 2 years. A = 4352 × (1 + 12.5/100)² = 4352 × (1.125)² = 4352 × 1.265625 = Rs 5508. Compound Interest = A - P = 5508 - 4352 = Rs 1156.

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