Find the interest on a sum of Rs. 1200 for 2 years at 20% compounded annually

To calculate the compound interest, we use the formula:

A = P (1 + r/n)^(nt)

Where: A = the amount of money accumulated after n years, including interest. P = principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

Given: P = Rs. 1200 r = 20% = 0.20 n = 1 (since it is compounded annually) t = 2 years

Substituting these values into the formula:

A = 1200 (1 + 0.20/1)^(1*2) A = 1200 (1 + 0.20)^2 A = 1200 * 1.20^2 A = 1200 * 1.44 A = Rs. 1728

The interest is the total amount minus the principal:

Interest = A - P Interest = Rs. 1728 - Rs. 1200 Interest = Rs. 528

So, the interest on a sum of Rs. 1200 for 2 years at 20% compounded annually is Rs. 528.