If Rs. 7,500 is borrowed at a compound interest rate of 4% per annum, what will be the total amount payable after 2 years?

Explanation

The amount A after 2 years with compound interest is calculated as A = 7500 × (1 + 0.04)^2 = 7500 × (1.04)^2 = 7500 × 1.0816 = Rs. 8,112.