Multiple choice

Find the compound interest on Rs 1,200 for 2 years at 10% per annum

  1. Rs 252

  2. Rs 225

  3. Rs 300

  4. Rs 350
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

CI = P * (1 + r/100)^n - P = 1200 * (1.1)^2 - 1200 = 1200 * 1.21 - 1200 = 1452 - 1200 = 252.

AI explanation

Using the compound interest amount formula, the final amount is 1200(1 + 0.10)^2 = 1200(1.21) = 1452. The compound interest is the final amount minus the original principal, which is 1452 - 1200 = 252. The compound interest is Rs 252.

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