Multiple choice

Megha lended Rs.$8000$ as a loan for $4$ years at the rate $4\%$ compounded annualy. Calculate the interest she will recive by the method of simple interest.

  1. $8963.26$
  2. $9358.86$
  3. $1358.86$
  4. $9863.25$
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C Correct answer
AI explanation

Calculate the final amount using the compound interest formula A = 8000(1 + 0.04)^4. Solving this gives the total amount as 9358.86. Subtracting the original principal of 8000 from this amount gives a total compound interest of 1358.86.

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