Question

Find compound interest on ₹ 8000 at 15$\%$ per annum for 2 years 4 months, compounded annually.

• A. Rs. 3109
• B. Rs. 3200
• C. Rs. 3181
• D. Rs. 3901

Answer 1

The correct option is A

Rs. 3109

$Time=2years4months$ = $2\left(\frac{4}{12}\right)years=2\frac{1}{3}years$

It is compounded annually so first we will calculate amount for 2 years using A = $P\times (1+\frac{R}{100}{)}^n$

$Amount=₹[8000\times (1+\frac{15}{100}{)}^2$ = ₹ $8000[\frac{23}{20}\times \frac{23}{20}]$ = 10580
Now interest on this for 4 months ($\frac{1}{3}$ years ) will be equal to

I = $\frac{10580\times 15}{3\times 100}$ = ₹ 529

Final amount = ₹ 10580 + ₹ 529 = ₹ 11109

Compound interest = ₹ 11109 - ₹ 8000 = ₹ 3109