Question

Find the compound interest on Rs. $6400$ for $2$ years, compounded annually at $\frac{15}{2}\%$ per annum.

• A. $996$
• B. $986$
• C. $976$
• D. $966$

Answer 1

The correct option is A $996$

$\Rightarrow$ $P=Rs.6400,n=2years,R=\frac{15}{2}\%$

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

$\Rightarrow$ $A=6400(1+\frac{15}{2\times 100}{)}^2$

$\Rightarrow$ $A=6400\times \frac{215}{200}\times \frac{215}{200}$

$\Rightarrow$ $A=Rs.7,396$

$\Rightarrow$ $Compoundinterest=A-P$

$\Rightarrow$ $CompoundInterest=Rs.7,396-Rs.6,400=Rs.996$