Question

Find the CI on ₹ 10,000 for 3 years at $10\%$ per annum compounded annually.

• A. 3,610
• B. 3,310
• C. 3,910
• D. 3,390

Answer 1

The correct option is B

3,310

C.I = A - P

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

Substituting P = ₹ 10,000, R $=10\%$, n = 3 years we get

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

C.I = 10,000 ​$(\frac{110}{100}{)}^3-10,000$

= 10,000 ​$(\frac{110}{100}{)}^3-10,000$

= 10,000 ​$\left(\frac{110\times 110\times 110}{100\times 100\times 100}\right)-10,000$

= ₹ 13310 - ₹ 10,000

= ₹ 3,310

Hence, C.I = ₹ 3,310