Correct Answer - Option 3 : Rs. 2,520
Given:
Principal = Rs. 12,000
Time = 2 years
Rate = 10% per annum
Formula used:
A = P{1 + (R/100)}n
Where,
A = Amount
R = Rate
n = Time
C.I = A – P
Where,
C.I = Compound interest
A = Amount
P = Principal
Calculations:
A = P{1 + (R/100)}n
⇒ A = 12,000 × {1 + (10/100)}2
⇒ A = 12,000 × (11/10)2
⇒ A = 12,000 × (121/100)
⇒ A = 14,520
Now, CI = A – P
⇒ CI = 14,520 – 12,000
⇒ CI = 2,520
∴ The compound interest after 2 years is Rs. 2,520