Question

Find the C.I on Rs 20,000 for 3 years at 10% per annum compounded annually.

• A. Rs 6,620
• B. Rs 6,000
• C. Rs 26,620
• D. Rs 26,000

Answer 1

The correct option is A

Rs 6,620

Given:

P = Rs 20,000

R = 10%

n = 3 years

$C.I=P{[1+\frac{R}{100}]}^n-P$

$C.I=20,000{[1+\frac{10}{100}]}^3-P$

$C.I=20,000\times \frac{110}{100}\times \frac{110}{100}\times \frac{110}{100}-P$

$C.I=Rs.26,620-P$

$C.I=Rs.26,620-Rs.20,000$

$C.I=Rs.6,620$