Multiple choice

The compound interest on $Rs\;5000$ at $8\%$ per annum for $2$ years, compounded annually is

  1. $Rs\;800$
  2. $Rs\;825$
  3. $Rs\;832$
  4. $Rs\;850$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CI = P * (1 + r/100)^n - P = 5000 * (1.08)^2 - 5000 = 5000 * 1.1664 - 5000 = 5832 - 5000 = 832.

AI explanation

Using the standard compound interest formula, the total amount is calculated as 5000 * (1 + 8/100)^2. This simplifies to 5000 * 1.1664, resulting in a total amount of 5832. Subtracting the principal from this total amount gives the compound interest as 5832 - 5000 = 832.

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