Find compund interest on Rs. 8000 at 15% per annum for 2 years, compounded annually.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 2580.00.
Given that
Principal = Rs. 8000
Rate of interest = 15% per annum
Time = 2 years
Formula used
Compound interest = Principal ( 1 + Rate/100)time - Principal
Calculation
C.I. = 8000(1 + 15/100)2 - 8000
= 8000 × (529 - 400)/400
= 20 × 129 = Rs. 2580