Question

A sum of $Rs.20,000$ is borrowed by Heena for $2$ years at an interest of $8\%$ compounded annually. Find the Compound Interest (C.I.) and the amount she has to pay at the end of $2$ years.

• A. $1728$
• B. $3328$
• C. $2366$
• D. $3200$

Answer 1

The correct option is B $3328$

Given that,

$P=Rs.20,000$

$R=8$%

$T=2years$

As compounded annually, $n=2$.

Amount at the end of $2$ years $=P{(1+\frac{R}{100})}^n$

$=20000{(1+\frac{8}{100})}^2$

$=20000\times \frac{108}{100}\times \frac{108}{100}$

$=Rs.23,328$

Compound Interest (C.I) $=23328-20000=Rs.3328$