Find the compound interest on ₹7,500 at 4% per annum for 2 years.

Correct option is B

Given:

Principal (P) = ₹7,500

Rate of Interest (R) = 4% per annum

Time (T) = 2 years

Formula Used:

​$$A = P \left(1 + \frac{R}{100} \right)^T$$​​

Compound Interest=A−P

Solution:

A = $$7500 \left(1 + \frac{4}{100} \right)^2$$​​

= 7500$$\left(1.04\right)^2$$​​

=7500×1.0816 =8112

Compound Interest=8112−7500=612

Option (B) is right.

Alternate Method:

Concept Used:

$$a + b +\frac{ab}{100}$$

Soliution:

Rate of Interest (R) = 4% per annum

successive %=4 + 4 +$$\frac{16}{100}$$ =8.16%​

Compound Interest=7500$$\times$$​ $$\frac{8.16}{100}$$​= 612

Option (B) is right.