Question

Find the compound interest on $Rs.12600$ for $2$ years at $10\%$ per annum compounded annually.

• A. ₹ 2500
• B. ₹ 2654
• C. ₹ 2646
• D. ₹ 2464

Answer 1

Answer: (C)

Given:

Principal $\left(P\right)=Rs.12600$,
Rate $\left(R\right)=10\%$,
Number of years $\left(n\right)=2$
We know that,

$A=P\times {(1+\frac{R}{100})}^n$
$\Rightarrow A=12600\times {(1+\frac{10}{100})}^2$
$\Rightarrow A=12600\times {\left(\frac{11}{10}\right)}^2$
$\Rightarrow A=12600\times \frac{11}{10}\times \frac{11}{10}$

$\Rightarrow A=126\times 11\times 11$

$\Rightarrow A=Rs.15246$

$\Rightarrow$ Compound interest $C.I.=A-P$

$\Rightarrow C.I.=Rs.15246-Rs.12600$
$\Rightarrow C.I.=Rs.2646$

Hence, Option C is correct.