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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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