What is the compound interest in Rs on Rs 2400 at the rate of 20 per annum compounded yearly for 2 y...........

Quantitative Aptitude (CPO) Compound Interest

What is the compound interest (in Rs) on Rs 2400 at the rate of 20% per annum compounded yearly for 2 years?

960

1024

1056

1120

Let’s break it down and look at what’s really happening here:

- The principal is Rs 2400.

- The interest rate per year is 20%, and it’s compounded yearly.

- Time period is 2 years.

Here’s the formula:

Compound Interest = P × [(1 + R/100)n – 1],

where P = principal, R = rate, n = years.

Plug in the numbers:

= 2400 × [(1 + 20/100)² – 1]

= 2400 × [(1.2)² – 1]

= 2400 × [1.44 – 1]

= 2400 × 0.44

= 1056

Let’s check the options:

1. 960

2. 1024

3. 1056

4. 1120

So the correct answer is Option 3: 1056.

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