Question : The simple interest on a sum of money at 10% per annum for 2 years is INR 8,100. What would be the compound interest (in INR) on the same sum for the same period at 15% p.a, when the interest is compounded yearly? (nearest to INR 1)
Option 1: 8,100
Option 2: 12,751
Option 3: 14,671
Option 4: 13,061
Correct Answer: 13,061
Solution :
Rate,
Term,
Simple interest = INR 8,100
Let
Simple interest, SI =
⇒ 8100 =
⇒
⇒
and,
Compound interest, CI =
=
=
=
~
Hence, the correct answer is 13,061.