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Question 1:
What would be the compound interest accrued on an amount of 6250 Rs. at the end of 2 years at the rate of 8 % per annum?
A. 7280
B. 1040
Feedback Given, principal = 6250
No. of years = 2
Rate of interest = 8
Amount = P x (1+r/100)n,
=> Amount = 6250 x (1+8/100)2
= 6250 x (108 / 100)2
= 6250 x (108 / 100) x (108 / 100)
= 7290
Compound Interest = Amount - Principal
= 7290 - 6250
= 1040
Therefore, Compound Interest = Rs. 1040
C. 1065
D. 7390

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