Question

Find C.I. on Rs. $12000$ at $5$ $\%$ p.a. for $3$ years compounded annually.

• A. Rs.$1891.50$
• B. Rs.$2891.50$
• C. Rs.$3891.50$
• D. Rs.$4891.50$

Answer 1

The correct option is A Rs.$1891.50$

Amount after $3$ years $=$ $P{(1+\frac{r}{100})}^3$
$=$ $12000\times {(1+\frac{5}{100})}^3$
$=$ Rs. $13891.50$
C.I. $=$ Amount $-$ Principal
C.I. $=13891.50-12000$
$=$ Rs. $1891.50$

Thus, compound interest is Rs. $1891.50$.