Question

If Harsha borrowed ₹ 15000 from a bank to buy a scooter at a rate of 25% per annum compounded yearly, then the amount he pays after 3 years will be

• A. ₹ 29,296.87
• B. ₹ 28,497.60
• C. ₹ 32,421.10

Answer 1

The correct option is A ₹ 29,296.87

Given
Principal, $P=₹15,000$
Rate of interest, $r=25\%$
Number of years, $n=3$

We know that,
Amount, $A=P{[1+\frac{r}{100}]}^n$
$=15000{[1+\frac{25}{100}]}^3$
$=15000{[1+\frac{1}{4}]}^3$
$=15000{\left[\frac{5}{4}\right]}^3$
$=₹29,296.87$