If the simple interest on a sum for 3 years at 7% per annum is ₹ 9450, then what will be the compound annual compound interest of that amount for 2 years at 7% per annum?Options12,345.2010,12712,6786,520.50

To solve this problem, we first need to find the principal amount. We know that the formula for simple interest is I = PRT/100, where I is the interest, P is the principal, R is the rate, and T is the time.

Given: I = ₹ 9450 R = 7% per annum T = 3 years

We can substitute these values into the formula and solve for P:

9450 = P * 7 * 3 / 100 9450 = P * 21 / 100 P = 9450 * 100 / 21 P = ₹ 45000

Now that we have the principal, we can find the compound interest. The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate (in decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for.

Given: P = ₹ 45000 r = 7% per annum = 0.07 n = 1 (since it is compounded annually) t = 2 years

We can substitute these values into the formula and solve for A:

A = 45000(1 + 0.07/1)^(1*2) A = 45000(1 + 0.07)^2 A = 45000 * 1.07^2 A = ₹ 51345.50

The compound interest is then A - P = ₹ 51345.50 - ₹ 45000 = ₹ 6345.50.

So, the compound interest for 2 years at 7% per annum is ₹ 6345.50. The closest option to this value is 6,520.50.