Multiple choice

The simple interest accrued on an amount of Rs. 22500 at the end of four years is Rs.5625. What would be the approximate compound interest accrued on the same amount at the same rate after two years? (in Rs.)

  1. 2450

  2. 2630

  3. 2900

  4. 3155

  5. 2732
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest formula: SI = P×R×T/100. Substituting: 5625 = 22500 × R × 4 / 100, giving 562500 = 90000R, so R = 6.25%. Compound Interest for 2 years: Amount = 22500 × (1 + 6.25/100)² = 22500 × 1.0625² ≈ 22500 × 1.1289 ≈ 25400. CI = 25400 - 22500 = 2900 (approximately). Option C matches.

Keep practicing — related questions