Find the total amount (in Rs.) on Rs. 4,500 at 12% per annum for 2 years and 8 months compounded annually.
- AOption (a)
Rs. 6,097.28
- BOption (b)
Rs. 6,096.38
- COption (c)
Rs. 6,069.38
- DOption (d)
Rs. 6,095.95
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Correct answer
Rs. 6,096.38
Why this answer is correct
Given:
Principal (P) = Rs. 4,500
Rate of intetrest (R) = 12% per annum
Time (T) = 2 years and 8 months
Formula Used:
Amount (A) = P (1 + R/100)T
Calculation:
for the 1st 2 years, rate = 12%
For the next 8 months:
12 months ⇒ rate = 12%
So, 8 months ⇒ rate = 12/12 × 8 = 8%
Now,
A = 4500 (1 + 12/100)2 (1 + 8/100)
⇒ A = 4500 (1 + 3/25)2 (1 + 2/25)
⇒ A = 4500 × (28/.25)2 (27/25)
⇒ A = 4500 × 28/25 × 28/25 × 17/25
⇒ A = (180 × 28 × 28 × 27) / 625
⇒ A = 3810240 / 625 = 6096.38
Hence, the correct answer is option (2).



































