Question

What would be C.I. on Rs. $17500$ at the rate of $12\%$ per annum compounded annually after $2$ years?

• A. Rs. $4442$
• B. Rs. $4452$
• C. Rs. $4462$
• D. Rs. $4482$

Answer 1

Answer: (B)

Rs. $4452$

As we know,

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

here,

$P=$ Principal amount

$r=$ Rate

$n=$ Number of years

$⟹A=17500{(1+\frac{12}{100})}^2$

$=\frac{17500\times 112\times 112}{100\times 100}$

$⟹A=7\times 20\times 112$

$⟹A=21952$

$C.I.=A-P=21952-17500$$=\text{Rs}4452$

Ans is $\left(B\right)$