Multiple choice

What amount of compound interest can be obtained on an amount of Rs. 4800 @ 6% p.a at the end of two years?

  1. 544.96

  2. 576

  3. 593.28

  4. 588

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

CI = P * ((1 + r/100)^n - 1) = 4800 * ((1.06)^2 - 1) = 4800 * (1.1236 - 1) = 4800 * 0.1236 = 593.28.

AI explanation

Using the compound interest formula for the amount, A equals P times 1 plus R over 100 raised to the power of N, the total amount is 4800 times 1.06 squared, which equals Rs. 5393.28. The compound interest is the total amount minus the principal of Rs. 4800, yielding Rs. 593.28.

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