Multiple choice

The compound interest on Rs. $100000$ at $20\%$ per annum for $2$ years $3$ months, compound annually is ________.

  1. Rs. $151200$
  2. Rs. $100000$
  3. Rs. $51200$
  4. Rs. $251200$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 100000, Rate = 20%, Time = 2.25 years. Amount = 100000 * (1 + 0.2)^2 * (1 + 0.2 * 0.25) = 100000 * 1.44 * 1.05 = 151200. Interest = 151200 - 100000 = 51200.

AI explanation

The amount for 2 years at 20 percent is calculated using the compound interest formula Amount = Principal times (1 + Rate divided by 100) raised to the power of Time, giving 100000 times 1.2 raised to the power of 2, which equals Rs. 144000. For the remaining 3 months, the interest is simple interest on this new base, calculated as 144000 times 20 divided by 100 times 3 divided by 12, resulting in Rs. 7200. The compound interest is the final amount minus the principal, which is (144000 plus 7200) minus 100000, yielding Rs. 51200.

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