Question

Find compound interest on Rs. 6250 at 16% per annum for 2 years, compounded annually.

• A. Rs. 2160
• B. Rs. 2340
• C. Rs. 1520
• D. Rs. 3120

Answer 1

The correct option is A Rs. 2160

Find compound interest on Rs 6250 at 16% per annum for

2 years compounded annually

Compound Interest $=\left[Principal{[1+\frac{Rate\%}{100}]}^{time}\right]-$ Compound Interest

So we know that

Principal $=Rs6250$

Rate $\%=16\%$

Time $=2$ years

$C.I=P{[1+\frac{R}{100}]}^T-C.I$

$=6250{[1+\frac{16}{100}]}^2-6250$

$=6250{[1+\frac{4}{25}]}^2-6250$

$=[6250\times \frac{29}{25}\times \frac{29}{25}]-6250$

$=8410-6250$

$=RS2160\left(Anu\right)$