A testbook.com rd Teese oe Start Complete Exam Preparation Rea re. ocd f dikes MasterClasses Cres ea ig Download App Exc Question View this Question Online > The simple interest on certain sum of money is Rs. 4096 for 4 years at the rate of 12.5% per annum. What will be the compound interest if the same sum of money is kept for 2 years at same rate of interest compounded annually? 1. Rs. 2657 2. Rs. 1857 3. Rs. 2176 4, Rs. 3258 Answer (Detailed Solution Below) Option 3: Rs. 2176 Detailed Solution Given: Rs. 4096 R=125%pa. N=4,2years Formula used: 1=PxRxN/100A=Px(1+(R/100))% Where, P = Principal amount, R = Rate of interest, N = number of years and | = Simple interest Calculation: Here, |= 4096 = 4096 = Px 12.5x 4/100 = P = 4096 x 100/ (4% 12.5) =P =8192 Now, using P for calculating compound interest = A=8192 x (1.125)? = A=8192x 9x 9/ (8x8) = A= 10368 = 1= 10368 - 8192 + Compound interest obtained is Rs. 2176