The compound interest on a sum of Rs 20,000 at 15% p.a. for 2years, interest compounded yearly, is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Rs 9,095.
A = P(1 + r/100)n
A = 20000 ( 1 + 15/100)2 × [1 + (15 ×2/3)/100]
A = 29095.
CI = 29095 - 20000 = 9095.