Multiple choice

What is the compound interest on an amount of Rs. $4800$ at the rate of $6$ per cent. p. a at the end of $2$ years?

  1. Rs. $544.96$
  2. Rs. $576$
  3. Rs. $593.28$
  4. Rs. $588$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P(1 + r/100)^n = 4800(1 + 0.06)^2 = 4800 * 1.1236 = 5393.28. Compound Interest = 5393.28 - 4800 = 593.28.

AI explanation

Using the compound interest formula A = P * (1 + R/100)^n, the total amount becomes 4800 * (1 + 6/100)^2. This simplifies to 4800 * 1.1236, which equals Rs. 5393.28. Subtracting the principal of Rs. 4800 from this amount yields a compound interest of Rs. 593.28.

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