​Find the compound interest on ₹20,000/- in 2 years at 8% per annum, if interest is compounded yearly.​

Correct option is A

Given: 

Principal = Rs.20000

Time = 2 years 

Rate = 8% 

Formula Used:

$$A = P (1 + \frac{R}{100})^2$$

Solution:

A = $$20000(1+\frac{8}{100})^2$$ 

A = $$20000 \times \frac{27}{25}\times \frac{27}{25}$$ 

A = Rs. 23328 

Interest =  A - P = 23328 - 20000 = Rs. 3328

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