Question

What is the compound interest on ₹ 25000 in 2 years at the rate of 15 p.c.p.a?

• A. Rs 8063.5
• B. Rs 8062.9
• C. Rs 8062.5
• D. Rs 8060.5

Answer 1

The correct option is C Rs 8062.5

Given
P= ₹ 25000 , R= 15 p.c.p.a

A = value after two years

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

$=25,000(1+\frac{15}{100}{)}^2$

$=25,000(\frac{115}{100}{)}^2$

$=25,000\times \frac{115}{100}\times \frac{115}{100}$

$=330,625$
Compound interest = A - P
=330,62.50 - 25,000
= ₹ 8,062.50