Question

Compound interest on ₹ 9,900 for 2 years at 15% per annum, compounded annually is

• A. ₹ 3,187.75
• B. ₹ 3,192.75
• C. ₹ 3,199.75
• D. ₹ 4,001.75

Answer 1

The correct option is B

₹ 3,192.75

Here, Principal (P) = ₹ 9900, Time (n) = 2 years, Rate of interest (R) = 15% p.a.
$Amount\left(A\right)=P(1+\frac{R}{100}{)}^n$

A=$9900(1+\frac{15}{100}{)}^2$
Therefore A = ₹ 13,092.75
Compound Interest (C.I) = A - P = ₹ 13,092.75 - ₹ 9,900 = ₹ 3,192.75