Multiple choice

Calculate the amount and the compound interest on Rs. $12,000 $ for $2$ years at $5$% per annum compounded annually.

  1. Rs. $13,500$ and Rs. $1500$
  2. Rs. $13,230$ and Rs. $1,230$
  3. Rs. $14728$ and Rs. $2,728$

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

Amount = 12000 * (1 + 5/100)^2 = 12000 * (1.05)^2 = 12000 * 1.1025 = 13230. Interest = 13230 - 12000 = 1230.

AI explanation

Using the compound interest formula, the amount is calculated as 12000 multiplied by 1.05 squared, which equals 13230. The compound interest is the amount minus the principal, so 13230 minus 12000 equals Rs. 1230.

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