What will be the compound interest on a sum of Rs. 8100 at 7 p.c.p.a. in 2 years?

A Rs. 1137.69

B Rs. 1173.69

C Rs. 1167.69

D Rs. 1147.69

E Rs. 1139.69

Correct Answer: Option B

Amount on Compound Interest:

\(\Rightarrow {\bf{Amount}} = {\bf{P}}{\left( {1 + \frac{{\bf{R}}}{{100}}} \right)^t}\)

Where,

P = Principal,

R = Rate of interest,

T= Time period

Here, Principal = Rs 8100, Time = 2 years and Rate = 7 p.c.p.a

\(\therefore amount = 8100{\left( {1 + \frac{7}{{100}}} \right)^2}\)

\(= 8100{\left( {\frac{{107}}{{100}}} \right)^2}\)

= Rs 9273.69

C.I = Amount – Principal

⇒ C.I = (9273.69 – 8100)

= Rs 1173.69