Correct Answer - Option 4 : Rs. 252
GIVEN:
Principal (P)= Rs1200, Rate(R) = 10%, Time(N) = 2 years
FORMULA USED:
A = P (1 + R/100)N
CALCULATION:
A = P (1 + R/100)N
⇒ A = 1200(1 + 10/100)2
⇒ A = 1200(1 + 1/10)10
⇒ A = 1200 × 11/10 × 11/10
⇒ A = 12 × 121
⇒ A = Rs1452
⇒ Amount = Principle + Interest
⇒ Interest = Amount - Principle
⇒ Interest =Rs1452 - Rs1200
⇒ Interest = Rs252
∴ Interest on sum of Rs1200 at the rate of 10% for 2 years = Rs252