alleryFind the compound interest on Rs 12,600 for 2 years at 10 per cent compounded annually.
ARs 2,520
BRs 2,600
CRs 2,766
DRs 2,646
Answer & Solution
Correct answer: D. Rs 2,646
1. Use A = P (1 + R/100) raised to n, with P = 12600, R = 10, n = 2.
2. A = 12600 x (11/10) x (11/10).
3. A = Rs 15,246.
4. Compound interest = A - P = 15246 - 12600 = Rs 2,646.
5. Simple interest would be Rs 2,520, so the Rs 126 gap is the compounding.
_Source: syllabus Maths Ch7 'Comparing Quantities', Example 8_
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