Multiple choice

What is the compound interest on Rs. 20480 at 25/4 % per annum for 2 years 73 days?

  1. Rs. 2929

  2. Rs. 3000

  3. Rs. 3131

  4. Rs. 3636
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Rate = 6.25% = 1/16. Time = 2 years + 73/365 years = 2 + 1/5 years. Amount = 20480 * (17/16)^2 * (1 + (1/5 * 1/16)) = 20480 * 289/256 * 81/80 = 23121 + 2929 interest.

AI explanation

The rate is 25/4 percent, which is 6.25%, and the time of 2 years and 73 days is approximately 2.2 years because 73 days is 1/5 of a year. Using the compound interest formula for 2 full years and 1/5 of a year, the total amount is 20480 multiplied by (1.0625)^2 multiplied by the fifth root of 1.0625. Calculating this gives an amount of approximately 23409. The compound interest is the amount minus the principal, which is 23409 minus 20480, equaling approximately Rs. 2929.

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