What will be the compound interest (in Rs., to the nearest rupee) on Rs. 17,600 for 2 years at 7% per annum, compounded annually?
- A2,015
- B2,330
- C2,550
- D1,225
Solution & Step-by-step Explanation
Principal (P) = Rs. 17,600
Rate (R) = 7% p.a.
Time (n) = 2 years
Amount (A)=P(1+
100
R
)
n
A=17600×(1+
100
7
)
2
=17600×(1.07)
2
A=17600×1.1449=20150.24
Compound Interest (CI)=A−P=20150.24−17600=2550.24
Rounding to the nearest rupee, we get Rs. 2,550.
Rate (R) = 7% p.a.
Time (n) = 2 years
Amount (A)=P(1+
100
R
)
n
A=17600×(1+
100
7
)
2
=17600×(1.07)
2
A=17600×1.1449=20150.24
Compound Interest (CI)=A−P=20150.24−17600=2550.24
Rounding to the nearest rupee, we get Rs. 2,550.