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