Multiple choice

The compound interest on Rs. $24,480$ at $\displaystyle6\frac{1}{4}\%$ per annum for $2$ years $73$ days, is:

  1. Rs. $2,929$
  2. Rs. $3,000$
  3. Rs. $3,131$
  4. Rs. $3,636$
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A Correct answer
AI explanation

The time period of 2 years 73 days converts to 2 and 1/5 years, making the total amount A = 24480 * (1 + 25/400)^2 * (1 + (25/400)/5). This simplifies to 24480 * (17/16)^2 * (81/80), which evaluates to an amount of Rs. 27409. Subtracting the principal of Rs. 24480 from this amount yields a compound interest of Rs. 2929.

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