Find the compound interest earned on a sum of ₹400 in 2 years at the rate of 25% p.a.
225

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Solution

The correct option is A 225
$Given: P = ₹ 400, T = 2 years,$ R = 25%

We know that,
$A = P (1 + \frac{R}{100})^{n}$

On substituting the values, we get,
$A = ₹ 400 \times (1 + \frac{25}{100})^{2} = ₹ 400 \times (\frac{5}{4})^{2} = ₹ 400 \times \frac{25}{16} = ₹ 625$

$Also, C . I = A - P C . I = ₹ 625 - ₹ 400 C . I = ₹ 225$

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