Question

Find the amount and compound interest on $Rs.25,625$ at $4$% per annum for $3$ years compounded annually(approx.).

• A. $A=28825,C.I=3200$
• B. $A=28825,C.I=3000$
• C. $A=28025,C.I=3000$
• D. $A=20025,C.I=3200$

Answer 1

The correct option is A $A=28825,C.I=3200$

Principal amount, $\left(P\right)=Rs.25,625$

Rate of interest, $\left(r\right)=4\%$

Time, $\left(n\right)=3$

Amount, $\left(A\right)=?$

Compound interest, $(C.I.)=?$

As we know that,

$A=P{(1+\frac{r}{100})}^n$

$\Rightarrow A=25625\times {(1+\frac{4}{100})}^3$

$\Rightarrow A=25625\times {\left(\frac{26}{25}\right)}^3$

$\Rightarrow A=25625\times \frac{17576}{15625}$

$\Rightarrow A=Rs.28824.64\approx Rs.28825$

Compound interest, $(C.I.)=A-P$

$\Rightarrow C.I.=28825-25625=Rs.3200$

Hence, (A) is the correct answer.