Question

Calculate the compound interest for the third year on Rs. $30,000$ invested for $5$ years at $10$% per annum.

• A. $3630$
• B. $3530$
• C. $3330$
• D. $3230$

Answer 1

The correct option is A $3630$

$\Rightarrow$ $P=Rs.30000,R=10\%$

$\Rightarrow$ C.P. for third year = $P\times \frac{R}{100}(1+\frac{R}{100}{)}^2$

$\Rightarrow$ C.P. for third year = $30000\times \frac{10}{100}\times (1+\frac{10}{100}{)}^2$

$\Rightarrow$ C.P. for third year =$3000\times \frac{121}{100}$

$\therefore$ C.P. for third year = $Rs.3630.$