What will be the compound interest on a sum of ₹2800 for 2 years at 15% per annum compounded annually?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹903.
CI = P(1 + )T - P
CI = compound interest, P = Principal, R = Rate, T = Time
CI = 2800(1 + )2 - 2800
⇒ 2800(1 + )2 - 2800
⇒ 2800()2 - 2800
⇒ 2800 × - 2800
⇒ 3703 - 2800 = ₹903