Find the compound interest on Rs. 9375 at 8% per annum for 2 yr?OptionsRs.1560Rs.1590Rs.1548Rs.1512

To calculate 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. 9375 r = 8% per annum = 0.08 (in decimal) n = 1 (since it is not mentioned, we assume interest is compounded annually) t = 2 years

Substituting these values into the formula:

A = 9375 (1 + 0.08/1) ^ (1*2) A = 9375 (1 + 0.08) ^ 2 A = 9375 * 1.08 ^ 2 A = 9375 * 1.1664 A = Rs. 10935

The compound interest is then calculated as A - P:

Compound Interest = A - P Compound Interest = 10935 - 9375 Compound Interest = Rs. 1560

So, the compound interest on Rs. 9375 at 8% per annum for 2 years is Rs. 1560.