Question
Download Solution PDFA sum of ₹13,475 is invested at 7.5% per annum compounded annually for 2 years. Find the compound Interest earned (rounded to the nearest rupee).
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal (P) = ₹13,475
Rate (r) = 7.5% per annum
Time (t) = 2 years
Formula used:
Compound Interest (CI) = A - P
Amount (A) = P × (1 + r/100)t
Calculation:
A = 13,475 × (1 + 7.5/100)2
⇒ A = 13,475 × (1 + 0.075)2
⇒ A = 13,475 × (1.075)2
⇒ A = 13,475 × 1.155625
⇒ A = ₹15,572 (rounded to nearest rupee)
CI = A - P
⇒ CI = 15,572 - 13,475
⇒ CI = ₹2,097
∴ The correct answer is option (4).
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