Question
A sum of ₹12,000 earns ₹1,920 as simple interest in
4 years. What will be the compound interest on the same sum in 2 years at the same rate of interest per annum?Solution
Simple Interest per year = ₹1,920 / 4 = ₹480. Rate of interest = (480 / 12,000) × 100 = 4% Compound Interest = P × [(1 + r/100)^t - 1]: CI = 12,000 × [(1 + 4/100)^2 - 1] = 12,000 × (1.0816 - 1) = 12,000 × 0.0816 = ₹979.2. Correct Option: d
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