Question

Find the compound interest on ₹ 21000 in 2 years at the rate of 12 p.c.p.a.

• A. Rs 5342.4
• B. Rs 5442.5
• C. Rs 5462.4
• D. Rs 5243.8

Answer 1

The correct option is A Rs 5342.4

Given
P= ₹ 21,000
T(n)= 2 years
R= 12%
We know that

$A=P(1+\frac{r}{100}{)}^n$

$=21,000(1+\frac{12}{100}{)}^2$

$=21,000(\frac{112}{100}{)}^2$

$=21,000\times \frac{112}{100}\times \frac{112}{100}$

=₹ 26,342.40

Compound interest
= Amount (A)- Principal (P)
=26,342.40 - 21,000
=₹ 5342.40