Calculate the compound interest earned on Rs.14,800 at an annual interest rate of 13.5% after two years. (Round your answer to the nearest whole number)

Explanation

The compound interest (CI) is calculated using the formula: CI = P[(1 + r/100)^n - 1], where P = 14,800, r = 13.5%, and n = 2 years. CI = 14800 * [(1 + 13.5/100)^2 - 1] = 14800 * [(1 + 0.135)^2 - 1] = 14800 * (1.135^2 - 1) = 14800 * (1.288225 - 1) = 14800 * 0.288225 = 4266 (rounded to nearest integer). Therefore, the compound interest accrued is Rs.4266.