Multiple choice

Calculate the amount and the compound interest on Rs.$12,000$ in $2$years and at $10 \%$ per year.

  1. $Rs.\ 14,520$ and $Rs.\ 2,520$
  2. $Rs.\ 14,000$ and $Rs.\ 2,000$
  3. $Rs.\ 13,520$ and $Rs.\ 2,820$
  4. $Rs.\ 17,520$ and $Rs.\ 2,120$
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A Correct answer
Explanation

The amount A = P(1 + r/100)^n = 12000(1 + 10/100)^2 = 12000(1.21) = 14520. The compound interest is A - P = 14520 - 12000 = 2520.

AI explanation

Using the compound interest formula A = P(1 + r/100)^n, the amount is 12000(1 + 10/100)^2 = 12000(1.1)^2 = 14520. The compound interest is the amount minus the principal, which equals 14520 - 12000 = 2520. The result is Rs. 14,520 and Rs. 2,520.

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