Multiple choice

What will be the compound interest accrued on Rs.12,000 at the rate of 4% per annum after of 2 years?

  1. 971.5

  2. 975.9

  3. 979.2

  4. 973.4

  5. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Compound interest is calculated as P * ((1 + r/100)^n - 1). For P=12000, r=4, and n=2, the interest is 12000 * ((1.04)^2 - 1) = 12000 * (1.0816 - 1) = 12000 * 0.0816 = 979.2.

AI explanation

Using the compound interest formula, the total amount is A = 12000 * (104/100)^2, which evaluates to 12000 * 1.0816 = Rs. 12979.2. Subtracting the principal of Rs. 12000 from this amount yields a compound interest of Rs. 979.2.

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