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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
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.