Question

Calculate the amount and interest on Rs $1800$ for $3$ years at $12\frac{1}{2}\%$ per annum compound annually

• A. $732.890$
• B. $742.890$
• C. $762.890$
• D. $752.890$

Answer 1

The correct option is C $762.890$

Given, $P=1800$, $r=12.5\%$

$t=3$ year

CI $=P{(1+\frac{r}{100})}^t-P$

$=1800[{(1+\frac{12.5}{100})}^3-1]$

$=1800[{\left(\frac{112.5}{100}\right)}^3-1]$

$=1800\times 0.4238$

$=762.85$.