There is a 60% increase in an amount in 5 years at simple interest. What will be the compound interest on Rs. 6,250 for two years at the same rate of interest, when the interest is compounded yearly?

Answer: Option A

Solution

Answer: Option A

Solution:

$$\text{Rate }\%=\frac{60}{5}=12\%$$

$$159\to 159\times 10=1590$$