Question

Find the CI 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

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

Here, P = Rs 20,000, R = 10%, n = 3 years.

So, 20,000${[1+\frac{10}{100}]}^3$ = Rs 26,620.

So, CI = Rs 26,620 - Rs 20,000 = Rs 6,620