The compound interest on Rs. 8000 for 2 years and 4 months at the rate of 15% per annum, compounded annually, will be-

Explanation

$\because$ P = 8000 Rupees n = 2 year 4 months r = 15% From $A = P \left(1 + \frac{r}{100}\right)^n \cdot \left(1 + \frac{r \times a}{b \times 100}\right)$ As per the question $A = 8000 \left(1 + \frac{15}{100}\right)^2 \cdot \left(1 + \frac{15 \times \frac{4}{12}}{100}\right)$ $A = 8000 \times \frac{23}{20} \times \frac{23}{20} \times \frac{21}{20}$ $A = 529 \times 21 = Rs. 11109$ $\therefore$ compound interest = 11109 – 8000 = Rs. 3109