There is 100% increase to an amount in 8 years, at simple interest. Find the compound interest of Rs. 8000 after 2 years at the same rate of interest.
I = PTR/100
there is 100% increase in amount means, interest = principle.Â
given, T = 8yrs.
I = P
P = P*8*R/100
R = 12.5%
compound interest of 8000/- at 12.5% for 2 years isÂ
CI = total amount - 8000/-
  = P$$(1+R/100)^{n}$$ - 8000/-
  = 8000$$(1+12.5/100)^{2}$$ - 8000/-
  = 10125 - 8000
  = 2125/-
so the answer is option D.
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