Multiple choice

The compound interest on Rs. $800$ for $2$ years at $5\%$ per annum is:

  1. Rs. $80$
  2. Rs. $82$
  3. Rs. $81$
  4. Rs. $41$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

CI = P * ((1 + r/100)^n - 1). P = 800, r = 5, n = 2. CI = 800 * ((1.05)^2 - 1) = 800 * (1.1025 - 1) = 800 * 0.1025 = 82.

AI explanation

The compound interest formula for two years is CI = Principal * (1 + Rate/100)^2 - Principal. Substituting the provided values gives CI = 800 * (1 + 5/100)^2 - 800 = 800 * 1.1025 - 800 = 882 - 800. The compound interest is Rs. 82.

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