Question 120

What Is the compound interest (in Rs.) on a principal sum of Rs. 2800 for 2 years at the rate of 12% per annum?

Solution

Principal sum = Rs. 2800

Rate of interest = 12% and time = 2years

Compound interest = $$P[(1+\frac{R}{100})^T-1]$$

= $$2800[(1+\frac{12}{100})^2-1]$$

= $$2800[(\frac{28}{25})^2-1]$$

= $$2800\times(\frac{784-625}{625})$$

= $$2800\times\frac{159}{625}=Rs.$$ $$712.32$$

=> Ans - (C)

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