What will be the compound interest accrued on a sum of Rs 64000 at the rate of 5% per annum in 2 years compounded annually?

Rs 6560

Compound Interest = Amount - Principal

Amount = P$(1 + \frac{R}{100})^t$

here, P = Rs 64,000. R = 5%, t = 2 years 

⇒ Amount =  64000$(1 + \frac{5}{100})^2$ 

                =  64000$(\frac{21}{20})^2$

                = 64000 $\frac{441}{400}$

                =  70,560

Compound Interest = 70,560 - 64,000 = Rs 6,560