Question

Find the compound interest on Rs. $8000$ for $3$ years, compounded annually at $10\%$ per annum.

• A. $2648$
• B. $2640$
• C. $2348$
• D. $2216$

Answer 1

The correct option is A $2648$

Here, $P=$ Rs. $8000,R=10\%$ per annum and $n=3$ years

Using the formula, $A=P{(1+\frac{R}{100})}^n$

Amount after $3$ years $=8000\times {(1+\frac{10}{100})}^3$

$=8000\times \frac{11}{10}\times \frac{11}{10}\times \frac{11}{10}$

$=10648$

Thus, amount after $3$ years $=$ Rs. $1648$.

And compound interest $=$ Rs. $(10648-8000)=2648$.