The amounts of Rs. 7500 at compound interest at 4% per annum for 2 years, is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs. 8112
Let the principal be P with the rate of interest r for time period T, then the amount will be
⇒ P(1 + r/100)T
⇒ 7500(1 + 4/100)2
⇒ 7500(26/25)2
⇒ 262 × 12
⇒ 676 × (10 + 2)
⇒ 6760 + 1352
⇒ Rs.8112