Question

What is the compound interest on an amount of Rs 4800 at the rate of 6 per cent p.a. at the end of 2 years ? 

(a) Rs 544.96 

(b) Rs 576 

(c) Rs 593.28 

(d) Rs 588

Answer 1

(c) Rs 593.28

P = Rs 4800, r = 6% p.a., n = 2

\(\therefore\)C.I = A - P= P\(\big(1+\frac{r}{100}\big)^n\) - P

= 4800\(\big(1+\frac{6}{100}\big)^2\) - 4800

= 4800 x \(\frac{53\times53}{50\times50}\)- 4800

= 5393.28 - 4800 = Rs 593.28