Correct Answer - Option 4 : 2,544
Given:
Amount after 4 years (A4) = Rs. 7,562
Amount after 5 years (A5) = Rs. 8,469.44
Principal (P) = Rs. 10,000
Formula used:
CI = P × [(1 + R/100)n – 1]
Where CI is compound interest, P is principal, R is rate percent, and n is time in years
Calculation:
Let the rate of interest be R%
CI for fifth year = A5 – A4 = 8,469.44 – 7562
⇒ CI for fifth year = 907.44
CI for fifth year = R% of A4
⇒ 907.44 = (R/100) × 7562
⇒ R = 90744/7562
⇒ R = 12%
CI = 10,000 × [(1 + 12/100)2 – 1]
⇒ CI = 10000 × 0.2544
∴ CI is Rs. 2,544