Multiple choice

Find the compound interest on ₹5,50,000 at 7% per annum for 2 years, compounded annually.

  1. ₹80,605

  2. ₹62,695

  3. ₹79,690

  4. ₹79,695

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

Compound Interest formula: A = P(1 + r/100)^n. P = ₹5,50,000, r = 7%, n = 2. A = 550000 × (1.07)^2 = 550000 × 1.1449 = ₹6,29,695. Compound Interest = A − P = 629695 − 550000 = ₹79,695. Option D is correct.