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Question : Find compound interest on Rs. 8000 at 15% per annum for 2 years, compounded annually.

Option 1: Rs. 2580.00

Option 2: Rs. 6345.51

Option 3: Rs. 2778.81

Option 4: Rs. 26548.81


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: Rs. 2580.00


Solution : Principal = Rs. 8000
Rate = 15%
Time = 2 years
We know, when compounded annually, Total amount $= \text{Principal}(1+\frac{\text{Rate}}{100})^{\text{Time}}$
⇒ Total amount $=8000(1+\frac{15}{100})^2$
⇒ Total amount $=8000(\frac{23}{20})^2$
⇒ Total amount $=8000×\frac{23}{20}×\frac{23}{20}$
⇒ Total amount $=10580$
So, the compound interest = Total amount – Principal = 10580 – 8000 = Rs. 2580
Hence, the correct answer is Rs. 2580.00.

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