What will be the compound interest accrued on a principal amount of 32,000 at the rate of 11 p.c.p.a after a period of 2 years?

Solution

Here the rate of interest is $11%$ per annum

Principal Amount is Rs $32000$

Compounded amount after $2$ years = $32000 ({1 +\frac{11}{100}})^{2}$

= Rs $39247.2$

Hence , CI = Compounded Amount - Principal Amount

CI $= 39247.2 - 32000$

= Rs $7247.2$

Option D is correct