Question

Hemant deposited Rs. 8000 in a private bank for 3 years at $15\%$ per annum compounded yearly. What is the compound interest that Hemant will get after 3 years?

• A. Rs 4000
• B. Rs 5000
• C. Rs 4567
• D. Rs 4167

Answer 1

The correct option is D Rs 4167

Amount $=P{(1+\frac{r}{100})}^n$

$P=8000$

$r=15\%$

$n=3$ years

Amount $=8000{(1+\frac{15}{100})}^3$

$=8000\times {\left(\frac{115}{100}\right)}^3$

$=12,167$

Interest$=12,167-8,000$

$=4,167$.