Find the compound interest (CI) on Rs. 12,600 for 2 years at 10% per annum compounded annually.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Rs. 2646.
Principal (P) = Rs. 12,600
Time (T) = 2 years
Rate (R) = 10%
Compound interest = P(1 + R/100)T - P
According to the question;
⇒ CI = 12600(1 + 10/100)2 - 12600
⇒ CI = 15246 - 12600
⇒ CI = 2646