What is the compound interest on ₹8,125 for 2 years at 4% per annum compounded yearly?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹663.
A = 8125 × (1 + 0.04)2 = 8125 × (1.04)2 = 8788 Rs
Compound Interest = A − P = 8788 - 8125 = Rs 663