Multiple choice

The amount of Rs. $7500$ for $2$ years at the rate of $4\%$ per annum compound interest is

  1. Rs. $7800$
  2. Rs. $8100$
  3. Rs. $8112$
  4. Rs. $8082$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the compound interest formula A = P(1 + r/100)^n, A = 7500(1 + 0.04)^2 = 7500 * 1.04 * 1.04 = 7500 * 1.0816 = 8112.

AI explanation

Using the compound amount formula Amount = Principal * (1 + Rate/100)^Time, we substitute the given values to get Amount = 7500 * (1 + 4/100)^2. This simplifies to 7500 * (26/25) * (26/25) = 12 * 676. The final amount is Rs. 8112.

Keep practicing — related questions