Multiple choice

Calculate the amount and the compound interest on : Rs. $3,500$ at $10\%$ per annum in $2$ years

  1. Rs. $4,935$ and Rs. $529$.
  2. Rs. $4,235$ and Rs. $735$.
  3. Rs. $3,506$ and Rs. $825$.
  4. Rs. $3,120$ and Rs. $900$.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Using the compound interest formula, the total amount after 2 years is calculated as 3500 * (1 + 10/100)^2, which equals 3500 * 1.21 = Rs. 4,235. The compound interest is the difference between this final amount and the principal, which is 4235 - 3500 = Rs. 735.

AI explanation

Using the compound interest formula A = P(1 + r/100)^n, the total amount is 3500(1 + 10/100)^2 = 3500(1.1)^2 = 4235. The compound interest is the amount minus the principal, giving 4235 - 3500 = 735. The result is Rs. 4,235 and Rs. 735.

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