Question

What is the compound interest on a sum of ₹7200 for `2 2/5` years at 20% p.a. interest compounded yearly (nearest to an Integer)? 

Options

• ₹4,290 

• ₹3,960

• ₹4,205

• ₹3,997

Answer 1

₹3,997

Explanation:

7200			20% = `1/5`
1440	1440  288	1440 288 288 57.6	× `2/5`

3168 + 829.4 = 3997.4 = 3,997