(c) ₹ 832
Explanation:
Present value= ₹ 5000
Interest rate= 8% per annum
Time=2 years
To find the amount we have the formula,
Amount (A) = P (1+(R/100))n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 5000 (1 + 8/100)2
⇒ A = 5000 (27/25)2
⇒ A = 200 (27 × 27/25)
⇒ A = 27 (27) (8)
⇒ A = ₹ 5832
∴ Compound interest = A – P
= 5832 – 5000= ₹ 832