Multiple choice

Find the compound interest to the nearest rupee on Rs. $7500$ for $2$ years $4$ months at $12\%$ per annum reckoned annually.

  1. Rs. $2240$
  2. Rs. $2250$
  3. Rs. $2284$
  4. Rs. $2276$
Reveal answer Fill a bubble to check yourself
D Correct answer
AI explanation

The time period is 2 years and 4 months, which equals 2 + 4/12 = 7/3 years. Using the compound interest formula for fractional years, A = 7500 x (1 + 12/100)^(7/3). Calculating 7500 x (1.12)^(7/3) results in an amount of approximately 9776.43. Subtracting the principal of 7500 gives a compound interest of approximately 2276.

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