Question

*1% discount is offered to the compound interest on Rs. 1200 at 10% p.c.p.a. for 2 years, then what will be the compound interest?*

1️⃣ Rs. 1452
2️⃣ Rs. 252
3️⃣ Rs. 249.48
4️⃣ Rs. 2.52​

Answer 1

Answer:

P = Rs. 1200

R = 10% per/annum: into decimal= 10/100 = 0.1

T = 2 years

Putting value into the formula,

Calculating compound interest for 1st year:

A = 1200 (1 + 0.1/1)(1)(1)

A = 1200 (1 + 0.1)(1)

A = 1200 (1 + 0.1)

A = 1200 (1.1)

A = 1452

= 1452- 1200 = 252