Rs. 7205 are invested in a scheme of compound interest (compounding annually). If the rate of interest is 20% per annum, then what is the interest earned (in Rs) in 1 year?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1441.
Given that
Principal = 7205
Rate of interest = 20%
C.I = Amount - P
⇒ C.I = 7205(1 + ) - 7205
⇒ C.I = 8646 - 7205
⇒ C.I = 1441