The simple interest on a sum for 2 years at 8% per annum is Rs. 1,440. What is the compound interest on the same sum for 2 years at the same rate?
Correct answer B. Rs. 1,497.60
Explanation
P = 1440 × 100 / 16 = 9,000. CI = 9000 × (1.08² − 1) = 9000 × 0.1664 = Rs. 1,497.60.
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