Multiple choice

Find the compound interest on Rs 31250 at 8% per annum for $\displaystyle 2\frac{3}{4}$ years

  1. Rs 8637

  2. Rs 7387

  3. Rs 1250

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Calculate interest for 2 years at 8% using A = P(1 + 0.08)^2 = 31250 * 1.1664 = 36450. The interest for 2 years is 5200. For the remaining 3/4 year, interest is calculated on 36450 at 8% simple interest for 0.75 years: 36450 * 0.08 * 0.75 = 2187. Total interest = 5200 + 2187 = 7387.

AI explanation

Using the formula for compound amount A = P(1 + r/100)^2 * (1 + (3r)/400), the amount is 31250 * (1 + 8/100)^2 * (1 + (3 * 8)/400). This gives 31250 * (27/25)^2 * (31/25) = 31250 * (729/625) * (31/25), which equals 38637. The compound interest is the amount minus the principal, so 38637 - 31250 = 7387.

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