The amount paid on a sum of 22500rs at simple interest in four years is 33300rs. What would be the amount of compound interest in Rs that has to paid on the same sum at same rate of interest in 2 yrs ? A.28,224 B.8586 C.5724 D.16908 E. None

First, find the rate of interest using the simple interest formula: 10800 equals 22500 times 4 times R divided by 100, which gives a rate of 12 percent. Now calculate the compound interest on 22500 for 2 years at 12 percent using the formula P times the quantity 1 plus R divided by 100 close quantity squared, yielding an amount of 22500 times 1.12 squared, or 28224. The compound interest paid is the final amount minus the principal, so 28224 minus 22500 equals Rs. 5724.

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