Question

What is the interest amount on a sum of Rs. 2500 at 12% Compound Interest for 2 years?

• A. Rs. 325
• B. Rs. 636
• C. Rs. 450
• D. Rs. 500

Answer 1

The correct option is B Rs. 636

solution:

A = p($1+\frac{r}{n}{)}^{nt}$

A = 2500($1+\frac{12}{100}{)}^2$

A=3136

interest amount = A-P 3136- 2500 = 636

hence the correct option: B