Discussion

Find the compound interest accrued on an amount of Rs.14,800 at 13.5% p.a at the end of two years.

Answer: D

\[ A = P\left(1 + \frac{R}{100}\right)^{n}, \qquad \text{CI} = A - P, \qquad \text{SI} = \frac{PRn}{100} \]

\[ \text{CI} = 14800\left[(1.135)^{2} - 1\right] \]

\[ (1.135)^{2} = 1.288225 \]

\[ \text{CI} = 14800 \times 0.288225 = \text{Rs. } 4265.73 \approx \text{Rs. } 4266 \]

Simple interest would be \( 14800 \times 0.27 = 3996 \); the extra Rs. 270 is 13.5% of the first year's Rs. 1998.

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