Multiple choice

What will be the compound interest on a sum of ₹ 9000 at compound interest compounded annually at 8% per annum in two years?

  1. ₹ 1498.76

  2. ₹ 1497.6

  3. ₹ 1597.6

  4. ₹ 1480.60

  5. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Compound interest = P * ((1 + r/100)^n - 1). P = 9000, r = 8, n = 2. CI = 9000 * ((1.08)^2 - 1) = 9000 * (1.1664 - 1) = 9000 * 0.1664 = 1497.6.

AI explanation

Using the direct formula for two-year compound interest, CI = P * (R/100) * (2 + R/100). Substituting the values gives CI = 9000 * (8/100) * (2 + 8/100) = 9000 * 0.08 * 2.08. Multiplying these yields 720 * 2.08, which equals Rs. 1497.6.

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