Multiple choice

Find the compound interest at the rate of 7% p.a. compounded annually for two years on the principal that yields a simple interest of Rs 9450 for 3 years at 7% p.a.

  1. 12,345.20

  2. 6,520.50

  3. 10,127

  4. 12,678.40
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SI = P×R×T/100. 9450 = P×7×3/100. P = 9450×100/21 = 45,000. CI = P[(1 + R/100)^n - 1] = 45000[(1.07)^2 - 1] = 45000[1.1449 - 1] = 45000 × 0.1449 = 6520.50. Option B shows 6520.50 which matches.

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