Simple and Compound Interest Questions

Multiple choice
  1. Rs 8637

  2. Rs 7387

  3. Rs 1250

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Calculate interest for 2 years at 8% using A = P(1 + 0.08)^2 = 31250 * 1.1664 = 36450. The interest for 2 years is 5200. For the remaining 3/4 year, interest is calculated on 36450 at 8% simple interest for 0.75 years: 36450 * 0.08 * 0.75 = 2187. Total interest = 5200 + 2187 = 7387.