Question
Reena borrowed Rs 8000 from Neena for 2 years at per annum compound interest. What C.I. did Veena pay to Neena?
- Rs 2125
- Rs 3100
- Rs 2215
- Rs 1920
Hint:
The given question is about compound interest. We are given the principal amount borrowed by Veena from Neena. We are given the rate and tenure. We have to find the compound interest. We will substitute the values in the formula for compund interest to get the value.
The correct answer is: Rs 2215
The given values are as follows:
Principal amount (P) = Rs. 8000
Tenure(T) = 2 years
Rate of interest per annum is R =
We have to find the compound interest.
The formula for compund interest is
C.I = 2120
So, the compound interest is Rs. 2120
Compound interest is the internet based on the principal amount and also the interest added to the sum. It's interst on that total amount.
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