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At the end of two years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.7200? (In Rs.)
Question

At the end of two years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.7200? (In Rs.)

A.

1612

B.

1712

C.

1412

D.

1512

Correct option is D

Principal (P) = 7200
Rate (R) = 10%
Time (T) = 2 years

Amount = P(1 + R/100)^T

= 7200(1.1)^2
= 7200 × 1.21
= 8712

Compound Interest
= 8712 − 7200
= 1512

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