Multiple choice

Compound interest for 2 years at the rate of 4% per annum on Rs 1000 is

  1. Rs 80

  2. Rs 81

  3. Rs 81.60

  4. Rs 89.60
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

CI = P * ((1+R/100)^n - 1) = 1000 * ((1.04)^2 - 1) = 1000 * (1.0816 - 1) = 1000 * 0.0816 = 81.60.

AI explanation

Using the two-year compound interest formula, the interest is calculated as 1000 times 0.04 squared plus 1000 times 0.04. This gives 1.60 plus 40, which equals 81.60 rupees.

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