What is the compound interest on Rs. 6,400 for 2 years at 12.5% per annum, compounded annually?
Correct answer A. Rs. 1,700
Explanation
12.5% = 1/8. A = 6400 × (9/8)² = 6400 × 81/64 = 8,100. CI = Rs. 1,700. Simple interest for the same period would be Rs. 1,600.
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