Find the compound interest on Rs. 20000 at 9% per annum for one year and 4 months, compound annually.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 2454
Given:
Principal (P) = 20000
R = 9%
T = 1 year 4 months
Calculations:
Rate (1 year) = 9%
Rate (4 months) = 9/3 = 3%
Total compound interest = 1800 + 600 + 54 = Rs 2454