1.

What will be the compound interest of 2 years at the rate of 15% per annum compounded annually for an amount of Rs. 2,800?1. Rs. 9562. Rs. 9033. Rs. 1,0004. Rs. 875

Answer» Correct Answer - Option 2 : Rs. 903

Given:

Sum = Rs.2800

Time = 2 years

Rate of interest = 15%

Formula used:

CI = P[(1 + (r/100))t - 1]

Calculations:

CI = 2800[(1 + (15/100))2 - 1]

⇒ 2800 × [((100 + 15)/100)2 - 1] = 2800 × [(115/100)2 - 1]

⇒ 2800(1.3225 - 1) = 2800(0.3225)

⇒ 903

∴ The compound interest = 903



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