What is the compound interest for 2 years on a sum of ₹7,200 at the rate of 15% per annum, if interest is compounded annually?

₹2,428 ₹2,322 ₹2,527 ₹2,829

₹2,322

From the formula for compound interest, we know, C.I = P(1+$\frac{R}{100})^t$– P  = 7200 [ 1 + \(\frac{15}{100}\) ]² - 7200 = 7200 [ \(\frac{23}{20}\) × \(\frac{23}{20}\)  - 1 ]  = 7200 [ \(\frac{529}{400}\)  - 1 ]  = 7200 [ \(\frac{129}{400}\) ] = Rs. 2322