In 2 years at simple interest the principal increases by 8%. What will be the compound interest earned (in Rs) on Rs 10 lakhs in 2 years at the same rate?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 81600
A/Q
8 = (100 × r × 2)/100
r = 4%
CI = P(1 + R/100)t - P
CI = 1000000[(1 + 4/100)2 - 1] = 1000000[(26/25 × 26/25) - 1] = Rs 81600