Question 120

What is the compound interest (in Rs) on Rs 2400 at the rate of 20% per annum compounded yearly for 2 years?

Solution

Principal sum = Rs. 2400

Rate of interest = 20% and time period = 2 years

Amount after compound interest = $$P(1+\frac{r}{100})^T$$

= $$2400(1+\frac{20}{100})^2$$

= $$2400\times(\frac{6}{5})^2$$

= $$96\times36=Rs.$$ $$3456$$

$$\therefore$$ Compound interest = $$3456-2400=Rs.$$ $$1056$$

=> Ans - (C)

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