Discussion of Question with ID = 042 under Compound-Interest

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Question

How much interest does an amount of Rs. 30000 earn @8% compounded annually for 2 years?

A

Rs. 4992.

B

Rs. 5092.

C

Rs. 4892.

D

Rs. 5192.

Soln.
Ans: a

Amount A = 30000 × $(1 + 8/100)^2$, which equals 30000 × $108/100$ × $108/100$ = 3 × 108 × 108 = Rs. 34992. So interest = A - P = 34992 - 30000 = Rs. 4992.

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