The compound interest on Rs.8,000 at 15% per annum for 2 years 4 month, compounded annually is,
1). Rs.2980
2). Rs.3091
3). Rs.3109
4). Rs.3100
Here is the right answer
Amount = P$(1+\frac{(R)^{t}}{100})$
$8000\times\frac{23}{20}\times\frac{23}{20}\times\frac{21}{20}$
= 11109
Compound Interest
= (11109 – 8000) = 3109.