Question

Find the CI, if ₹1000 was invested for 3 years at 10% p.a. compounded yearly.

• A. 451
• B. 1331
• C. 1000
• D. 331

Answer 1

The correct option is D 331

For compound interest,
Amount $A=P\times {(1+\frac{R}{100})}^n$

$A=1000\times {(1+\frac{10}{100})}^3$

$A=1000\times (1.1{)}^3$
$A=1000\times 1.331=1331$

Compound Interest $C.I.=A-P$
$C.I.=1331-1000C.I.=₹331$