What is the compound interest on Rs 8000 at 20% per annum for 2 years, compounded annually?

Answer and explanation

Correct answer: D. Rs 3520

  1. Step 1: Amount = P(1 + R/100)^2 = 8000 x 1.2^2 = 11520.
  2. Step 2: CI = Amount - P = 3520.
Answer
Rs 3520.

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