What is the compound interest (in ₹) on ₹2000 at per annum for 2 years, compounded annually?
Answer and explanation
Correct answer: B. 880
- Step 1: Identify the principal , annual compounding rate , and period .
- Step 2: Calculate the total compound maturity amount: .
- Step 3: Subtract the initial principal to determine compound interest: .
Answer
880.
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