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      Question

      If Rohit invested Rs. 16,000 at compound interest of 25%

      p.a., compounded annually, then interest earned by him in two years would be:
      A Rs. 7,500 Correct Answer Incorrect Answer
      B Rs. 9,000 Correct Answer Incorrect Answer
      C Rs. 12,000 Correct Answer Incorrect Answer
      D Rs. 10,000 Correct Answer Incorrect Answer

      Solution

      Amount received at the end of two years = 16000 x (1.25)2Β = Rs. 25,000 So, interest earned = 25000 - 16000 = Rs. 9,000

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