Find the compound interest on Rs 8500 at 10 percent per annum compounded quarterly for 2 years

The calculation confirms 1856.42 as the only matching option. Use one-fourth of the annual rate and four times the years because each quarter is a compounding period. The supplied calculation is: CI = P((1+R/400)^(4T) - 1) = 1856.42. Compound interest differs from simple interest because each completed period adds interest to the balance, and the next period earns interest on that enlarged amount. The distractors 1756.42, 2006.42, 1906.42 can arise from using simple interest, omitting the subtraction of principal, rounding too early, or applying the annual rate without adjusting the compounding frequency. A reliable verification is to rebuild the amount period by period and confirm that Amount − Principal equals the reported compound interest whenever interest, rather than amount, is requested. Also check reasonableness: with a positive rate the amount must exceed the principal, and more frequent compounding should not reduce the amount for the same nominal annual rate. This question strengthens formula selection, substitution accuracy and option elimination for SSC, Railway, banking and other aptitude examinations. The question-specific answer remains 1856.42 after this independent check.