What is the compound interest on Rs. 5,000 for 2 years at 12% per annum, compounded annually?

Topic: Interest
Subtopic: Compound Interest

ARs. 1,200

BRs. 1,272

CRs. 1,320

DRs. 1,440

Explanation

Amount = 5000 * (1 + 12/100)^2 = 5000 * (1.12)^2 = 5000 * 1.2544 = Rs. 6,272. Compound Interest = 6272 – 5000 = Rs. 1,272.

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