Question : What is the Compound Interest (in Rs.) on Rs. 12500 at the rate of 12% per annum compounded yearly for 2 years?
Option 1: Rs. 3000
Option 2: Rs. 2980
Option 3: Rs. 3050
Option 4: Rs. 3180
Correct Answer: Rs. 3180
Solution :
Principal, P = Rs. 12500
Time = 2 years
Rate = 12%
Compound Interest = P[$(1+\frac{r}{100})^n-1$], where P is principal, $r$ is rate of interest compounded annually for $n$ years.
= 12500[$(1+\frac{12}{100})^2-1$]
= 12500[$(1.12)^2-1$]
= 12500[1.2544 – 1]
= 12500 × 0.2544 = Rs. 3180
Hence, the correct answer is Rs. 3180.
Related Questions
Know More about
Staff Selection Commission Sub Inspector ...
Result | Eligibility | Application | Selection Process | Cutoff | Admit Card | Preparation Tips
Get Updates Brochure
Your Staff Selection Commission Sub Inspector Exam brochure has been successfully mailed to your registered email id “”.
