Rs 5000 are invested in a scheme of compound interest. If the rate of interest is 12% per annum, then what is the interest earned (in Rs) in 2 years?
Principal sum = Rs. 5000
Rate of interest = 12% and time period = 2 years
=> Compound interest = $$P[(1+\frac{R}{100})^T-1]$$
= $$5000[(1+\frac{12}{100})^2-1]$$
= $$5000[(\frac{28}{25})^2-1]$$
= $$5000(\frac{784-625}{625})$$
= $$8\times159=Rs.$$ $$1272$$
=> Ans - (B)
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