What would be the compound interest obtained on an amount of Rs. 5300 at the rate of 15 p.c.p.a. after 2 years?
Rs. 1709.25
Rs. 1708.65
Rs. 1709.75
Rs. 1725.65
Compounded Amount $( = P{\left( {1 + {r \over {100}}} \right)^t})$
$(\eqalign{ & = 5300{\left( {1 + {{15} \over {100}}} \right)^2} \cr & = {{5300 \times 115 \times 115} \over {100 \times 100}} \cr & = 7009.25 \cr})$
Compound interest = Compounded amount – Principal amount
= 7009.25 – 5300
= 1709.25