Question

Calculate the compound interest for Rs 25,000 for 3 years at the rate of 6% per annum compounded annually.

• A. $4775.40$
• B. $4776.40$
• C. $4660$
• D. None of these

Answer 1

The correct option is A $4775.40$

$\Rightarrow$ $A=P[1+\frac{r}{100}{]}^n$

$\Rightarrow$ $A=Rs.25,000\times (\frac{106}{100}{)}^3$

$\Rightarrow$ $25,000\times \frac{53}{50}\times \frac{53}{50}\times \frac{53}{50}$

$\Rightarrow$ $A=Rs.29,775.40$

$\Rightarrow$ $CI=A-P$

$\Rightarrow$ $Rs.29,775.40-Rs.25,000$

$\therefore$ $CompoundInterest=Rs.4775.40$.