What is the compound interest on Rs 8000 at 5% per annum for 2 years, compounded annually?
Answer and explanation
Correct answer: B. Rs 820
- Step 1: Amount = P(1 + R/100)^2 = 8000 x 1.05^2 = 8820.
- Step 2: CI = Amount - P = 820.
Answer
Rs 820.
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