The compound interest (in ₹, to the nearest integer) on ₹8,950 for 2 years at the rate of 9% per annum, compounded annually, is:
Answer & explanation
Correct answer: option 2
From the formula for compound interest, we know,
C.I = P(1+$\frac{R}{100})^t$– P
= 8950 ( 1 + \(\frac{9}{100}\) )² - 8950
= 8950 × \(\frac{109}{100}\) × \(\frac{109}{100}\) - 8950
= 10633.495 - 8950
= 1683.495
= 1683 ( nearest Integer )