Discussion of Question with ID = 087 under Compound-Interest

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Question

What is compound interest on Rs. 80000 after 2 years, invested at a rate of 6% compounded annually?

A

Rs. 9888.

B

Rs. 9988.

C

Rs. 9788.

D

Rs. 10088.

Soln.
Ans: a

The shortcut formula is CI = Pr(r + 200)/10000. Putting P = 80000, r = 6, we get ${80000 × 6 × (6 + 200)}/10000$ = Rs. 9888.


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