Multiple choice

What is the amount for a sum of money Rs.7500 at 6% rate of interest C.I. for 2 years?

  1. 8427

  2. 8417

  3. 8400

  4. 5400

  5. 8100
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A Correct answer
Explanation

Amount = P(1 + r/100)^n = 7500(1 + 0.06)^2 = 7500 * 1.1236 = 8427.

AI explanation

Using the compound interest formula, the total amount is the principal multiplied by the quantity of 1 plus the rate divided by 100, all raised to the power of the number of years. Substituting the given values gives 7500 multiplied by the quantity of 1 plus 0.06 raised to the second power. This simplifies to 7500 multiplied by 1.1236. Multiplying these values gives a final amount of 8427.

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