Question

Find compound interest on Rs. 7500 at 4$\%$ per annum for 2 years, compounded annually.

• A. Rs.641
• B. Rs.612
• C. Rs.650
• D. Rs.720

Answer 1

The correct option is B

Rs.612

$Amount$ = $Rs.[7500\times (1+\frac{4}{100}{)}^2]=Rs.(7500\times \frac{26}{25}\times \frac{26}{25})=Rs.8112$.
$\therefore C.I.=Rs.(8112-7500)=Rs.612$.