Multiple choice

Simple interest earned on Rs. 2500 after 6 years is Rs. 4500. Find the compound interest earned on the same principle, with the same rate of interest for a period of 2 years.

  1. $1729$
  2. $1550$
  3. $2527$
  4. $1725$
  5. $None of these$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

SI=P×R×T/100, so 4500=2500×R×6/100. Solving: R=30% per annum. CI for 2 years: Amount=P(1+R/100)²=2500(1.3)²=2500×1.69=4225. CI=4225-2500=1725. Option D is correct.

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