Simple interest on a certain sum at 8% per annum for 5 years is ₹2400. What will be the compound interest on the same sum at the same rate for 2 years?
Answer & explanation
Correct answer: option 2
Simple interest on a certain sum at 8% per annum for 5 years is ₹2400
According to the question,
SI = 8% × 5 = 40%
40% of principal = 2400
then 100% = 6000
Now we know the CI for two years at 8% per annum 16.64%
So, 16.64% of 6000 = ₹998.40